Tech giant Google Inc. (GOOG) surged in early trading on a strong third quarter earnings report, topping $1,000 a share for the first time in its existence. With the stock pop the Palo Alto, Cal.-based search engine company surpassed Microsoft Corporation (MSFT) to become the third most valuable company on the planet.
The company beat both revenue and earnings estimates from analysts. While the cost-per-click artes Google charges have dropped, the volume has increased, which led to a healthy revenue increase year-over for the company.
While the increase in revenues and profits was substantial, there was one worrying aspect of Google’s earnings report: their foray into phones. Losses attributed to the Motorola hardware division grew to $248 million, as compared to $192 million a year ago.
Google more than made up with the loss with the major increase in advertising volume. Like Facebook Inc. (FB) ,Google has seemingly benefited substantially from a renewed focus on monetizing mobile users.
Investors were undeterred, and Google’s stock exploded on the report. The over $30 billion in added valuation spurred by the stock pop drove the entire American market upwards, with the S&P 500 up over 2 percent in early trading.
For the third fiscal quarter, Google reported net income of $2.97 billion, or $8.75 per share ($10.74 non-GAAP), versus the $2.17 billion, or $6.53 per share, from the same period a year ago. Revenue for the quarter was $14.89 billion, versus revenue of $13.3 billion from the previous year. Analysts were expecting a profit of $10.34 per share (excluding items) on revenues of $14.79 billion.
Google was up 12.98 perent in mid-day trading to hit $1,004.27 a share.
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