Google's results send the stock soaring

Investors are pleased as punch about the news from the search-engine giant.

By Motley Fool Investor Beat Oct 18, 2013 12:55PM
It's a great day to be a Google (GOOG) investor. Shares were hitting all-time highs Friday, up as much as 13% following the release of Google's third-quarter earnings Thursday afternoon.

Google's top-line revenue grew by 12%. Earnings grew by 35%, and the volume of clicks for search was up 25%. This helped to offset an 8% decrease in the average cost-per-click. Motley Fool analyst David Meier thinks beyond the great numbers, there's a hidden story here.
There's a business ordinary investors aren't paying attention to, which just posted growth of 85%. In just a few years, it now accounts for 8% of overall revenue. Google is known primarily for search, but this growing segment shows that Google continues to find new ways to create value.The Google logo is seen on a podium and projected on a screen at Google headquarters in Mountain View, Califorina Paul Sakuma/AP

Shares have returned 40% year to date, and today have crossed the $1,000 mark. Despite this, David thinks Google is still a buy. He argues there's simply not a better cash-flow machine than Google.

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Tags: GOOG
3Comments
Oct 18, 2013 2:44PM
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excellent stock.  this has been a classic case of "buy high and sell higher."

 

i hear these guys eat apples for lunch ... errrr eat apple's lunch ....

Oct 19, 2013 12:30PM
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Google's software socialism eats Apple's overpriced sauce.
Oct 19, 2013 12:33PM
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At a current PS of 6 I wonder when it could go back to $330 per share?
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