The upsurge in Google’s stock price adds $65 billion to the company’s market value. While the company was predicted to net $14.28 billion, Google actually raked in $14.35 billion in net revenue.
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Google’s announcement of its second-quarter financial results has led to the company’s shares reaching a record high.
The fortunes of Page and Brin are up 24% this year, an increase of about $7 billion each, according to the Bloomberg Billionaires Index. The total of the two brought the advertising revenues to $16 billion, which is up by 11 percent year-over-year. He noted that revenue growth for the company has been “remarkably consistent for three years in a row for a $70 billion ad run rate business”. When you add this to the $1.1 billion negative hit there was nearly $1.6 billion in lost revenue which means Google’s revenue growth would have been 21% or 10 percentage points higher than reported.
The first layer of the onion to peel is to look at the hedging impact on Google’s revenue since the company’s hedges mitigated $471 million or 30% of the dollar’s impact. Investors of the company felt encouraged by the financial report as well as Porat’s leadership.
Google’s new CFO Ruth Porat credited the strong Q2 results to continued growth in “core search, where mobile stood out, as well as YouTube and programmatic advertising”. “We are focused every day on developing big new opportunities across a wide range of businesses”.
Significantly for Google, Kordestani stressed that various new YouTube advertising initiatives were bearing fruit. “Plus, once users are in YouTube, they are spending more time per session watching videos”.
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Reuters said Google’s surge comes a day after it disclosed that viewing time for Youtube rose by 60 percent in the second quarter, with audience aged 18 to 49 who accessed the service on mobile alone greater than number of viewers on any U.S cable network. While analysts had predicted earnings of $6.73 per share, the company posted $6.99 earnings per share on a non-GAAP basis.
