SAN FRANCISCO (Reuters) -
Google on Thursday posted a
better-than-expected profit, defying fears the company is
facing an Internet advertising slowdown and sending its shares
past the $500 mark in extended trade.
The Web search leader, one of the hottest technology stocks
of 2007, had seen its shares erase last year's 50 percent gain
since the start of 2008 on investor concerns that the online ad
industry was maturing and vulnerable to a U.S. economic
downturn.
"It's a good time to be a Google bull," said Colin Gillis,
an analyst with Canaccord Adams. "The boys delivered."
On Thursday, the company said first-quarter net income rose
to $1.31 billion, or $4.12 per diluted share, from $1 billion,
or $3.18 per share, in the year-earlier quarter.
Excluding one-time items and stock option expenses, profit
was $4.84 a share, ahead of the average Wall Street forecast of
$4.53 per share as compiled by Reuters Estimates.
Gross revenue rose 42 percent to $5.19 billion. By
contrast, Google's revenue grew at a 63 percent rate in the
same quarter a year ago.
Revenue had been expected, on average, to grow 40 percent
to $5.13 billion, according to Reuters Estimates.
In addition to its own site, Google supplies Web search
advertising to partners ranging from Time Warner Inc's AOL and
IAC InterActiveCorp's Ask to News Corp's MySpace.
Google shares shot up as much as 11.5 percent to $501 in
extended trading from its close of $449.54 on the Nasdaq
earlier on Thursday.
(Reporting by Eric Auchard and Michele Gershberg in New
York; Editing by Braden Reddall)
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