Google (NASDAQ:GOOG) shares rose more than 13 percent during the stock exchange session Friday and for the first time exceeded the threshold of $1,000, as the stock is supported by good financial results reported by the company for the third quarter. Google is now one of the four companies with a stock price over $1,000, with the Berkshire Hathaway at the top of the list at $175,950 a share. Seabord (NYSEMKT:SEB) is second in the top at $2,828 a share and Priceline (NASDAQ:PCLN) is third at $1,048 a share.
The price of Google shares were up by almost 14 percent to $1,012.63 at the time of writing this news article. Google’s stock is up by over 40 percent since January and the market capitalization of the company rose by $40 billion today, comparable to the market capitalization of Yahoo! (NASDAQ:YHOO) at $34 billion and Hewlett-Packard (NYSE:HPQ) at $45 billion. Google share are trading at 31 times company’s revenues in the past 12 months.
Several analysts have raised their target price estimates for Google shares due to the strong financial results of the giant company that owns the search engine with the biggest market share.
Google profit increased by 36 percent in the third quarter compared to the same period last year to $3 billion and the company’s revenue rose 12 percent to $14.9 billion due to higher volume of advertising on smartphones.
Google has managed to offset the lower prices of advertising on mobile gadgets by increasing the volume of paid advertising spots.
The company has showed that it can monetize the online advertising services in the context of increased transition of online users toward smartphones and tablets. Advertising on mobile devices is sold at lower prices than advertising on the desktop PCs.
Google has a share of about one third of the global online advertising, according to eMarketer. Facebook is distant second, with a share of only 5 percent , but it has seen a stronger growth than Google in the last two years.
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