Google's spending is on the rise and hit a two-year high, according to GigaOM. However, Google's pinnacle of spending was $2 billion in late 2010 for a data center and office in New York City. Still, there's been some speculation on where the latest $1 billion was spent, including Google Fiber and competing with Apple, Facebook, Yelp and Amazon.
GigaOM suggests that Google is spending much of the cash on data centers in different countries to meet demand. Facebook, after all, has spent considerably more on expanding its footprint -- about a third of its revenue.
Looking at Google's report, we see that Google's $9.83 billion net revenue surpassed the $9.6 billion analyst average forecast, according to Reuters. While Google did lose 6 percent of cost-per-click because their business is increasingly more mobile, it's no longer hemorrhaging cash as it was last quarter. And now that the search titan has sold off Motorola Mobility's set-top business for $14.42 billion, last quarter's loss of $353 million seems inconsequential. In short, Google's looking pretty good to Wall Street.