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Google’s Stock Price Soars To Close At $1011.41 Per Share

Google Mountain View California

Google Mountain View California

Google’s stock price soared by 13 percent today to close above psychological $1,000 per share for the first ever after the search behemoth reported quarterly earnings that exceeded analysts’ expectations.

Google’s stock (NASDAQ: GOOG) was already up over 8 percent in after hours trading last night after the earnings report was released and continued to soar at the open this morning.  Google ended up closing at $1011.41 per share enthralling investor appetite for the company and other tech companies including Facebook which closed up 4%.

This latest stock surge marks a huge year for the search engine and investors. Google’s stock is up over 40 percent this year and nearly 170 percent over the past five years.  It’s been an amazing ride for those that bought into the Google IPO.  They’ve seen their shares rise from $85 per share to today’s close of $1011.41.

The Mountain View, CA based company reported earnings of $3 billion in the three months that ended in September, compared with $2.2 billion in the same period last year.  Analysts who follow the stock were projecting revenues of $14.80 billion and earnings per share of $10.34. Google exceeded expectations with $14.98 billion in revenue and earnings of $10.47 per share.

Google continues to dominate the search market and earns the majority of its revenue from search advertising.  The most recent report clearly illustrated the trend from PCs to smartphones and tablets.  Cost-per-click, the amount advertisers pay per click, declined by 6 percent last quarter.  It fell by 4 percent this year and 8 percent year over year.  However, the total volume of clicks, the amount of people who clicked on advertisements across the Google ad platform, increased by 26% offsetting the decline.

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