Google stock crosses $1,000 mark after earnings

Oct 19, 2013 by Bree Fowler
In this , Tuesday, Oct. 8, 2013, file photo, the Chrome logo is displayed at a Google event in New York. Google reports quarterly earnings on Thursday, Oct. 17, 2013. (AP Photo/Mark Lennihan, File)

Google's stock surpassed the $1,000 mark for the first time, helped by strong third-quarter results.

Shortly after the markets opened Friday, Google Inc. shares jumped 14 percent to $1,015.46 and closed a day heavy trading at $1,011.41. The gains marked Google's biggest one-day jump in more than five years.

The stock had never been higher than $928 in regular market trading since Google went public at $85 per share nine years ago.

Late Thursday, Google reported a 36 percent jump in third-quarter net income that beat Wall Street's predictions. The numbers showed that while the company's average ad prices continue to decline, they're being offset by a larger number of people clicking on ads.

Over the years, Google has expanded its reach far beyond the powerful search engine that made it famous. It now includes the video sharing site YouTube, along with the Android operating system that runs on close to 1 billion smartphones and tablets. The company ranks as the No. 1 digital ad company by revenue, leaving rivals such as Yahoo Inc. and Facebook Inc. far behind.

Google's stock has climbed steadily in the last five years, more than doubling in value. But the stock slipped slightly in recent months, while the overall market has risen, amid worries about deteriorating ad prices.

Google's average ad price has fallen from the prior year in each of the last eight quarters, primarily because advertisers aren't paying as much for mobile ads because the screens on smartphones and tablet computers are smaller than those on laptop and desktop computers.

As more people rely on mobile devices to connect to Google's and other services, the trend is driving down the company's average ad price, or "cost per click."

But the number of so-called "paid clicks" on Google's ads helped offset the lower prices in the third quarter. The clicking volume increased 26 percent from last year, an indication that Google's data analysis is doing a good job matching ads with the interests of its services' users.

Friday's stock surge takes Google's to about $333 billion, which still pales in comparison to that of technology industry rival Apple Inc. The iPhone and iPad maker ranks No. 1 in the world with a market capitalization of $462 billion.

It's unlikely that Google shares will stay above $1,000 for very long. The Mountain View, California, company plans to issue a new class of that will likely cut the value of the shares in half, though its market capitalization will be unaffected.

Explore further: Google shares soar past $1,000 on strong earnings

5 /5 (1 vote)
add to favorites email to friend print save as pdf

Related Stories

Forecast sees big payoff for Google's mobile ads (Update)

Jun 13, 2013

Google will sell more mobile advertising than the rest of its rivals combined for the second straight year, according to a new forecast that highlights the expansion of the Internet search leader's moneymaking ...

Recommended for you

Chinese tech giant Alibaba set to make a splash with US IPO

30 minutes ago

The largest tech IPO of the year will come from a company that many Americans have never heard of. Alibaba Group - a Chinese e-commerce behemoth - has decided to go public in the U.S. after months of speculation that it would ...

Ex-Apple chief plans mobile phone for India

22 hours ago

Former Apple chief executive John Sculley, whose marketing skills helped bring the personal computer to desktops worldwide, says he plans to launch a mobile phone in India to exploit its still largely untapped ...

Airbnb rental site raises $450 mn

Apr 19, 2014

Online lodging listings website Airbnb inked a $450 million funding deal with investors led by TPG, a source close to the matter said Friday.

US venture investments highest since 2001 (Update)

Apr 18, 2014

Funding for U.S. startup companies soared 57 percent in the first quarter to a level not seen since 2001, as venture capitalists piled more money into a growing number of deals, according to a report due out Friday.

User comments : 0

More news stories

Making graphene in your kitchen

Graphene has been touted as a wonder material—the world's thinnest substance, but super-strong. Now scientists say it is so easy to make you could produce some in your kitchen.

Low tolerance for pain? The reason may be in your genes

Researchers may have identified key genes linked to why some people have a higher tolerance for pain than others, according to a study released today that will be presented at the American Academy of Neurology's 66th Annual ...

How to keep your fitness goals on track

(HealthDay)—The New Year's resolutions many made to get fit have stalled by now. And one expert thinks that's because many people set their goals too high.

Less-schooled whites lose longevity, study finds

Barbara Gentry slowly shifts her heavy frame out of a chair and uses a walker to move the dozen feet to a chair not far from the pool table at the Buford Senior Center. Her hair is white and a cough sometimes interrupts her ...