Google shares surge on strong earnings

Oct 15, 2010
A sign is posted outside of the Google headquarters January 2010 in Mountain View, California. Google shares surged on Wall Street on Friday after the Internet search giant reported strong quarterly earnings.

Google shares surged on Wall Street on Friday after the Internet search giant reported strong quarterly earnings.

Google shares were up 59.88 dollars, or 11.07 percent, to 600.80 dollars in early afternoon trading.

The Mountain View, California-based Google on Thursday reported a 32-percent leap in net profit to 2.17 billion dollars and a 23 percent surge in revenue to 7.29 billion dollars, beating the expectations of Wall Street analysts.

In a bid to demonstrate the company can generate revenue from something other than Internet , Google for the first time on Thursday released revenue figures for its online display and mobile ad businesses.

Google is on track this year to take in 2.5 billion dollars from and more than a billion dollars from ads on mobile devices, senior vice president of product management Jonathan Rosenberg said.

"Our core business grew very well, and our newer businesses -- particularly display and mobile -- continued to show significant momentum," Google chief executive said.

Display ads are essentially online billboards as opposed to promotional links served up with search results.

Financial analysts were bullish on Google's results and outlook.

"With display and mobile now on a combined run-rate of 3.5 billion dollars and more transparent within the company's numbers, we believe the street will begin to give Google more credit for these newer revenue sources," said Douglas Anmuth of Barcleys Capital.

Youssef Squali of Jefferies said Google "had a great quarter on almost all fronts."

"With improving non-search , increasing international and domestic volume and pricing in its core business, as well as an improving online advertising macro environment, we believe Google is poised to continue its momentum towards the end of fiscal 2010 into fiscal 2011," Squali said.

Lou Kerner of Wedbush estimated that is "growing 50 percent faster than the global Internet ad market due to its scale and executional prowess."

Explore further: Twitter boss launches global cash register service

add to favorites email to friend print save as pdf

Related Stories

Facebook top publisher of display ads: comScore

May 13, 2010

Facebook has passed Yahoo! to become the top US publisher of display ads on the Web, another milestone for the fast-growing social network, according to figures released on Thursday.

Google reveals revenue splits with websites

May 24, 2010

Google on Monday revealed that websites and makers of online content get more than half the revenue from AdSense advertising deals with the Internet search powerhouse.

Google execs collect bonuses

Mar 03, 2009

Bonus may be a dirty word on Wall Street right now, but end-of-year cash is still being handed out in Silicon Valley.

Google's 3Q proves company can afford big spending

Oct 14, 2010

Google Inc. is still spending money like the recession is a distant memory, but investors can't complain too much as long as the Internet search leader keeps expanding its advertising empire like it did in ...

Recommended for you

'Call of Duty' blasts past $10 bn in sales

4 hours ago

Blockbuster military shooter video game "Call of Duty" has blasted past $10 billion in lifetime sales, propelled by demand for the latest installment in the 11-year-old franchise.

Square's point-of-sale service goes global

9 hours ago

Financial services startup Square is taking aim at cash registers across the globe, making its point-of-sale software available internationally in English, Spanish, French and Japanese.

Apple, Xiaomi trade smartphone barbs in China

19 hours ago

Top executives from US technology giant Apple and Chinese smartphone upstart Xiaomi traded light-hearted barbs on Thursday at a Chinese Internet conference, acknowledging the fierce competition between the ...

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.