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

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

NEW YORK (TheStreet) --Google (GOOG - Get Report) 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.

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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.

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