Google Stock Skyrockets After Strong Earnings Beat

By Jennifer BootonMarketWatch Pulse

Shares of Google Inc. skyrocketed in after-hours trade Thursday after the company reported much stronger-than-expected second-quarter earnings. Google continued to improve search and YouTube advertising revenues, reporting net income of $3.9 billion, or $6.51 a share, compared with a year-earlier profit of $3.4 billion, or $4.96 a share. Excluding one-time items, Google reported non-GAAP earnings of $6.99 a share, topping average analyst estimates of $6.70, according to FactSet. Total revenue increased 11% to $17.7 billion from $16 billion a year ago, virtually in-line with Wall Street expectations. Total advertising revenues were up 11% year-over-year, while traffic acquisition costs as a percentage of advertising revenues fell to 21% for the three months ending June 30, from 23% in the same period last year. Shares of Google jumped nearly 7.5% in after-hours trade following the results.

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