Business

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

  • AFP, New York City
  • |
  • Updated: Oct 19, 2013 12:27 IST

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.

 

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