Google shares get results boost
Published 15/07/2011 | 11:03
Google shares have surged after co-founder Larry Page's first results since taking over as chief executive impressed Wall Street.
The internet search giant beat expectations after net profit for the three months to June 30 jumped 36pc on a year earlier to $2.5bn and revenues lifted 32pc to a record $9bn.
Shares surged 12pc and returned the stock price to where it stood before Mr Page replaced Eric Schmidt as chief executive in early April.
Since then sentiment has been hit by fears that its earnings might suffer because of the company's commitment to hire 6,200 workers this year, the most in the internet search company's 13-year history.
Mr Page pledged to be a "careful steward of shareholders money" but also told analysts that Google would still invest heavily in expanding into other markets in pursuit of bigger profits in the future.
He said: "I see more opportunities for Google today than ever before because, believe it or not, we are still in the very early stages of what we want to do."
Google's newest venture is a Facebook-like social network called Plus, which launched two weeks ago and has received positive reviews.
In order to fulfil its expansion, Google increased its headcount by 9pc or 2,542 employees in the quarter, taking the overall total to nearly 28,800.
The average price paid per advertising click on Google's network rose 12pc from last year as advertisers were willing to pay higher prices to promote their products. Web surfers clicked on ads 18pc more times than a year earlier.