Google is back, shares surge to new high
SAN FRANCISCO — What a difference one quarter made.
Google shares hit a record high on Friday, soaring $96.47, or 16%, to $699.20, adding more value — $65 billion — in one day than any company ever has for a full market value of $468.3 billion.
Not adjusted for inflation, the Google one-day gain overshadowed Apple's one-day gain of $46.4 billion in April 2012.
Reversing six straight quarters of disappointing results, Google showed strong growth in mobile advertising revenue and in its YouTube business and tighter controls on costs in second-quarter financial results released Thursday after the close of trading. The earnings call also gave Wall Street its first opportunity to hear from new chief financial officer Ruth Porat, who joined Google in May from Morgan Stanley.
Analysts liked what they heard.
"We consider shares of Google a core holding given the massive cash flows from its legacy search business, its position in the daily habits of the worldwide populace, and its quest to find new revenue streams. We applaud the spirit of chasing after large market opportunities, and our view is that the addition of Ms. Ruth Porat as CFO may make the balance the company chooses between investment and profitability more appealing to investors," BGC Partners analyst Colin Gillis said in a research note.
That standout performance led to a flurry of upbeat research notes from Wall Street analysts on Friday. The big Google gain helped Nasdaq composite close out its best week in nearly nine months.