Google Profits Up
Google earned $381 million, or $1.32 a share, in the third quarter, up more than sevenfold from its $52 million, or 19 cents a share, a year ago. Last year’s results were depressed by a $201 million noncash charge related to settling a patent dispute with Yahoo.
Google shares rose about 10 percent after the announcement, which was at the end of regular trading. In after-hours trading, shares hit $335, a record, up from the $303.20 closing price in regular trading.
Part of the increase, he said, is coming from higher demand for search advertising, especially among larger companies, which in turn raises the bidding for advertisements. (Google runs a complex auction in which advertisers bid how much they are willing to pay if a user clicks on their ad.) In addition, Google has deployed more sophisticated technology to select which of the millions of advertisements to put on each page and in what order.
Source: NY Times.
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