This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Google Grooves on Big Quarter

Updated from Feb. 1

Google (GOOG - Get Report) shares jumped almost 13% Wednesday morning after the Internet search-engine kingpin posted a blowout fourth quarter.

For its fourth quarter ended Dec. 31, the Mountain View, Calif., company earned $204 million, or 71 cents a share, up from the year-ago $27 million, or 10 cents a share. So-called net revenue, excluding the fees the company pays its search-engine advertising partners, jumped to $654 million from $503 million in the third quarter.

In premarket trading Wednesday, Google was up $24.16 to $216.06, an all-time high for the stock.

Using the road map laid out by Google to exclude the costs of stock-based compensation, as Wall Street analysts prefer to, Google earned 87 cents a share in the latest quarter. The Thomson First Call analyst consensus estimate had the company making 77 cents a share.

"Google had an exceptional quarter. Revenues and profits increased significantly, our execution was solid across the company and most importantly, our relationship with our users, partners and advertisers became even stronger," said CEO Eric Schmidt. "All of this happened while we continued to innovate, expand around the world and make strategic, long-term investments."

Earnings before interest, taxes, depreciation and amortization, which analysts had expected to come in at $368 million, was $425 million.

From the third to the fourth quarter, advertising revenue grew 32% on a net basis and 28% on a gross basis, well above the high-teens organic growth that analysts calculated for Yahoo! (YHOO - Get Report) over the same period.

On a conference call with analysts, Google Chief Financial Officer George Reyes said the company benefited from strong holiday traffic growth and the addition of new partners to the Google Network, or the third-party sites running Google's ads. The company gained AOL Europe -- formerly a Yahoo! partner -- as an affiliate in mid-November.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
YHOO $36.01 -1.42%
EBAY $23.98 0.00%
GOOG $692.36 0.00%
AMZN $671.32 0.00%
TSLA $232.32 -3.92%


Chart of I:DJI
DOW 17,750.91 -140.25 -0.78%
S&P 500 2,063.37 -18.06 -0.87%
NASDAQ 4,763.2240 -54.37 -1.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs