HindustanTimes Sat,20 Dec 2014

Google share crosses $1,000, powered by Q3 profit

AFP  New York City, October 18, 2013
First Published: 20:09 IST(18/10/2013) | Last Updated: 12:27 IST(19/10/2013)

The shares of Internet giant Google crossed the $1,000 mark for the first time ever on Friday in opening trade on Nasdaq, a day after it reported a 36% spurt in net profit in the July-September quarter.

Google’s shares jumped more than 12% to $1,007.40 in heavy trading before edging back down to $1,000 later in the morning. The stock has never traded higher than $928 in regular market trading since Google went public at $85 per share nine years ago.

The company had reported a 36% jump in third-quarter net income, beating Wall Street’s predictions, late on Thursday.

Friday’s stock surge took Google’s market capitalisation to about $333 billion, which is still way behind technology industry rival Apple, the world’s largest company by  market cap at $462 billion.

Google’s strong profit figures showed that its declining average ad prices are being offset by a more people clicking on ads.

The company’s stock has more than doubled in value in the last five years. But the stock has slipped slightly in recent months, while the overall market has risen, amid worries about deteriorating ad prices.

Having diversified beyond its powerful search engine, Google now includes video sharing site YouTube, and the popular 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 and Facebook far behind.

more from Business

5.5% growth, no rate cuts till March: Mid-year review

India’s economy is likely to grow at 5.5% this year though private investments haven’t shown real signs of picking up yet, a finance ministry report said on Friday, even as it hinted that the Reserve Bank of India was unlikely to cut interest rates before March.

Most Popular
Copyright © 2014 HT Media Limited. All Rights Reserved