This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
TheStreet Open House

Google (GOOG) Surpasses $1,000, Breaks Records

Stocks in this article: GOOG

Updated from 1:57 P.M. to include analyst ratings in seventh paragraph.

NEW YORK (TheStreet) --Google (GOOG) continued to scale new heights, breaking an all-time record high by surpassing the $1,000 per share mark, after beat third quarter estimates. The world's largest search engine is the first technology company to have a four figure share price.

Google reported a 12% increase in third-quarter revenue to $14.9 billion, excluding traffic acquisition costs (TAC) across all its businesses. The search engine behemoth said net revenue for its Internet business was up 23% year on year to $10.8 billion from $8.76 billion. The company earned $10.74 per share for the quarter.

Mobile continues to benefit Google's YouTube business with 40% of the traffic from the site originating from mobile devices. In the third-quarter, 25% of traffic came from mobile and a year earlier, merely 6%.

"The company [has] both the ad campaigns and the accelerated viewership, particularly on YouTube, that can be monetized, so there is a healthy and needed revaluation going on," said Jim Cramer in his recent analysis on Real Money.

During a post-earnings conference call, CEO Larry Page said, "When I became CEO again, my goal was to ensure that Google maintains the passion and soul of a start-up as we grow. It's why I've worked so hard to increase the velocity and execution."

Shares gained 13.5% to $1,008.47 as of 1:45 p.m. ET. Year to date, the tech giant has climbed 42.4%, exceeding the S&P 500, which has rose 22.2%.

The company has been given a "market outperform" rating from JMP Securities' Ronald V. Josey with a revised price target of $1,100 from $975, on the belief its Enhanced Campaigns offering and its "more unified, multi-screen and multi-platform functionality can attract significant ad dollars."

Deutsche Bank's Ross Sandler reiterated a "buy" rating, revising his price target to $1,220 from $970. "We think the worst is behind Google from a sentiment perspective, and looking into 2014, we see several catalysts including revenue from Enhanced Campaigns, local, mobile and display/YouTube continuing to drive accelerating growth," he wrote.

BMO Capital Markets, however, is maintaining its "market perform" rating and $890 price target. Analyst Daniel Salmon said consensus 2014 EBITDA margins and anticipated margin erosion over time contributed to the rating, though he concedes "it has been a key stock for investors to accumulate in the face of challenges elsewhere in the mega-cap technology landscape."

TheStreet Ratings team rates Google Inc as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:

"We rate Google Inc (GOOG) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, good cash flow from operations and increase in stock price during the past year. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."

Written by Keris Alison Lahiff.

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link 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

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,805.41 +127.51 0.76%
S&P 500 1,964.58 +13.76 0.71%
NASDAQ 4,483.7150 +30.9230 0.69%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs