Google Tips The Scales
Market watchers continue to eye Google with interest after raising their estimates for the optimized search engine. Morgan Stanley did warn however the Google remains overweight despite their phenomenal third quarter earnings statement.
Morgan Stanley issued a research note saying Google posted its net revenue growth and operating EPS for the previous quarter well ahead of predictions. Because of this, the EPS for 2006 has grone from $7.52 to $8.80 a share.
Google published their third quarter earnings last Thursday and posted $1.578 billion, a notch above Yahoo’s reports for the same quarter. This number is up 96% from a year ago and 14% from last quarter.
Google’s earnings per share hit $1.32 on 290 million shares outstanding over the $1.19 from the second quarter on 287 million shares. This means a net income climb to $381.2 million over the $52 million last year. Traffic acquisition costs were $530 million.
On Friday, Google stock shot through the roof, up 12.10% and hitting $346.43 at one point before settling in at $339.90. In less than a year, Google’s stock has more than double in price.
John Stith is a staff writer for WebProNews covering technology and business.