Google reported a sevenfold increase in profit Thursday, and its stock soared similarly, jumping more than 12 percent Friday in the wake of the news.
The Internet search giant earned $381 million, or $1.32 a share, in the third quarter, up from its $52 million, or 19 cents a share, a year ago. The company outdid Wall Street expectations for the fifth consecutive quarter since its initial public offering in August 2004.
The company’s stock soared similarly this morning in the wake of the announcement, to $340.23 a share, a 12.21 percent leap, at 11:26 a.m. Friday.
Google said it saw a “sea-change” shift to Internet marketing from print and broadcast.
Many real estate agents compete for business using pay-per-click advertising or services such as Google Ads.
The prior quarter included a noncash charge of $201 million to settle a patent dispute with rival Yahoo.
Google’s gross revenue jumped 96 percent to $1.58 billion. Analysts, on average, had projected revenue of $1.46 billion, with forecasts ranging from $1.39 billion to $1.51 billion.
“Although this is typically a slower season for Internet properties, we had another exceptional quarter,” said Eric Schmidt, Google’s chief executive officer, in a statement.
“Our focus on end users and on quality of information and advertising worldwide continues to work extremely well. We are very pleased with how well this is working at scale.”
***
What’s your opinion? Send your Letter to the Editor to opinion@inman.com.
