What brings down the company’s total growth rate are its Network Members, which reported growth of 2% in the June quarter (vs. the total company’s 11%) or 12% after currency (21% for the total company).
A 16 percent surge in Google’s publicly traded stock translated into an additional $65.1 billion in shareholder wealth, on paper at least. It was also higher than the former record set by Apple, Inc. of $45 billion in 2012, reported Bloomberg. On average, the all-analyst consensus for Google is Moderate Buy. More importantly, Porat was able to point to increased revenue in an area that has been a bugbear for Google in recent years: mobile. In prepared remarks and in responses to analyst questions posed in a late Thursday conference call, Porat repeatedly stressed that Google intends to control its costs more diligently.
In a research note Nowak wrote, “Over 90% of the company’s net advertising revenue comes from Search – while we believe Search will continue to take share of global ad budgets and Google will retain its dominant share, growth in USA and United Kingdom markets (~50% of Google search revenue) has slowed”.
Google’s growth has been driven by its ability to accelerate revenue as advertising dollars shift to the internet, as well as by its extraordinary positioning as the search engine leader.
Regardless of where the money came from, investors are pleased. Google’s chief business officer, Omid Kordestani said: “The number of users coming to YouTube, who start at the YouTube homepage similar to the way they might turn on their TV, is up over three times year-over-year”.
“People are feeling pretty good about Google now”, said S&P Capital IQ analyst Scott Kessler. “Let’s see what happens when she has time to make a really positive impact.'”. However, even at that valuation, Apple still holds the crown as the most valuable company in the world with a market capitalization of $740 billion. The report added that it was largest single-day rise in the value of Google shares in seven years and powered the Nasdaq composite index to a record intraday high. The market value of the search giant increased by billions following the financial report announcement. Google’s 57,000 employees already also were feeling richer, too, because they all receive stock as part of their compensation packages.