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Google share price at record high on third quarter results

Google’s share price has hit a record high in response to better-than-expected third quarter results

Google’s share price has hit a record high in response to better-than-expected third quarter profits of $2.97bn and revenues of $14.9bn, up 12% compared with the same period a year ago.

Shares rose 6% in after-hours trading to reach $941.25, according to the BBC.

The results were in sharp contrast with second quarter results, which failed to reach market expectations, even though revenues were up 19% on the same period in 2012.

Google chief Larry Page said the company had experienced “another strong quarter” and had made “great product progress”.

The company said its internet business delivered net revenue, which excludes fees paid to partners, of $10.8bn in the third quarter, up 23% from $8.76bn in the year-ago period.

Despite the positive response by investors to the latest results, analysts said the closely watched measure of how much advertisers pay to place an advert declined 8% year on year.

But overall, paid clicks increased by 26% from the same time last year, and were up 8% from the previous quarter.

Analysts said this could be responsible for much of the positive sentiment because advertising makes up most of Google’s profits.

The company’s Motorola Mobile business unit posted revenue of $1.18bn, but this was down from $1.78bn for the same period in 2012.

Operational losses were also greater at $248m, compared with an operating loss of $192m in the third quarter of 2012.

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