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

Agog Over Google

Updated from 7:23 a.m. EDT

Google (GOOG - Get Report) blew out third-quarter earnings targets Thursday, confirming the company's near-term ability to continue a spectacular growth trajectory.

Wall Street applauded, sending the shares up nearly 8% to $458.22 in early trading Friday.

The Net search giant made $2.62 a share on an adjusted basis on net revenue of $1.87 billion, which reflects payments made to search ad partners.

Analysts were looking for EPS of $2.42 on sales of $1.81 billion.

"Our third-quarter results are a testament to the strength of our network of advertisers and partners, as well as our continuing focus on users," said CEO Eric Schmidt. "We were particularly pleased with the contributions of our international business in a seasonally weaker quarter."

The news comes a couple days after the latest disappointment from rival Yahoo! (YHOO - Get Report), whose shares hit a 52-week low Wednesday.

The company said revenue at Google-owned sites grew 84% to $1.63 billion, representing 60% of total revenue.

Operating expenses, other than cost of revenue, rose to $710 million from about $395 million a year earlier. These operating expenses included $382 million in payroll-related and facilities expenses, $98 million in stock-based compensation, and $50 million in advertising and promotional expenses, of which $14 million was related to certain distribution deals.

Third-quarter capital expenditures were $492 million, the majority of which was related to IT infrastructure investments, including data centers, servers and networking equipment.

1 of 4

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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
GOOG $539.79 1.40%
MSFT $47.61 2.19%
YHOO $43.38 1.24%
AAPL $132.04 1.87%
FB $80.55 1.53%


DOW 18,162.99 +121.45 0.67%
S&P 500 2,123.48 +19.28 0.92%
NASDAQ 5,106.5930 +73.8420 1.47%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs