Google (GOOG) shares have been on the steady rise lately since touching $436 per share on July 6th and $450 per share on August 31st, up over 25% from the stock’s Summer lows as of today’s closing price. Analysts began to doubt if Google’s growth was slowing, however, Google defied all the naysayers today with its “back-to-basics” beat the street strategy. Here’s the third quarter breakdown for Google:
Earnings: Q3 profits of $6.72, beating a gain of $5.13 in Q3 last year. Profits jumped 31% year-over-year.
Revenue: Increased 23% Year-over-Year t0 $7.29 Billion this year, from $5.94 Billion a year ago. Analysts expected revenue of $5.25 Billion. Google displayed very strong better-than-expected revenue growth this quarter.
Eric Schmidt, Google President and CEO stated, “Our core business grew very well, and our newer businesses — particularly display and mobile — continued to show significant momentum. Going forward, we remain committed to aggressive investment in both our people and our products as we pursue an innovation agenda.”
Comment: Shares of Google (GOOG) are currently trading up 7.96 % following the company’s earnings release after-the-bell, now trading at $584 per share, up from closing at $540.93.
According to the technical chart above, Google (GOOG) shares are now trading comfortably above the 50-day and 200-day moving averages. The value of GOOG shares are now back to levels not seen since earlier this year March and April. The number of employees at Google has grown quarter-over-quarter, from 21,805 to 23,331, or an increase of 1,526 employees. With more employees hired, more production is expected and Google is showing early signs of the positive trend toward its growth heydays with today’s very impressive earnings report.