Why Google Shares Popped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Google (NASDAQ: GOOGL  ) jumped more than 13% to record highs during intraday trading Friday following better-than-expected quarterly earnings results from the search juggernaut.

So what: Consolidated quarterly revenue rose 12% year-over-year to $14.89 billion, which translated to 21% growth in non-GAAP earnings per share to $10.74. For reference, analysts on average were expecting adjusted earnings of just $10.34 per share on $14.8 billion in sales. 

Now what: Google may be a highly technical, cutting-edge business with many moving parts, but CEO Larry Page weighed in to highlight the relative simplicity of their aspirations by saying, "We are closing in on our goal of a beautiful, simple, and intuitive experience regardless of your device."

To be sure, Google's efforts seem to be paying off handsomely, and nearly two dozen analysts promptly boosted their price targets above $1,000 per share.

With Google stock currently up more than 40% so far in 2013, shares might appear expensive at first glance, trading at 29 times last year's earnings and around 20 times next year's estimates. Even so, when you combine Google's solid earnings growth with the continued global migration toward Android-powered devices, I'm convinced that's a well-deserved premium for this solid, long-term-oriented business.

Three more compelling tech stocks for your portfolio
Interested in the next tech revolution? Then you'll need to learn about the radical technology shift some say forced the mighty Bill Gates into a premature retirement. Meanwhile, early in-the-know investors are already getting filthy rich off of it... by quietly investing in the three companies that control its fortune-making future. You've likely heard of one of them, but you're probably never heard of the other two... to find out what they are, click here to watch this shocking video presentation!

Read/Post Comments (0) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2689837, ~/Articles/ArticleHandler.aspx, 9/27/2016 11:44:04 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,158.69 63.86 0.35%
S&P 500 2,154.56 8.46 0.39%
NASD 5,284.54 27.05 0.51%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/27/2016 11:28 AM
GOOGL $811.41 Up +8.76 +1.09%
Alphabet (A shares… CAPS Rating: *****