TGIF: Google’s big rally

Google’s stock surged by a whopping 16 percent Friday, all thanks to a promising quarterly earnings report delivered Thursday by new CFO Ruth Porat.

The historic gain of more than $65 billion beats Apple’s record $45 billion gain in April 2012, which also followed an earnings report, according to Howard Silverblatt of S&P Dow Jones Indices.

“That’s still on par to be the biggest dollar gain of anybody. Just being in that kind of an area is amazing,” Silverblatt said in an interview Friday afternoon, as the gain was still holding its price after opening at about $52 billion. To find surges of a similar ratio, he had to look back to 1982 when IBM was dominating the PC market. Update at 1:10 p.m. Friday, just after close of market: Google added about $65.1 billion in wealth

Porat has only been Google’s chief financial officer since just after Memorial Day, meaning that the bright financial results she revealed had been set in motion before her arrival, but her comments also signaled a new long-term focus on cost discipline that pleased Wall Street.

“People are understandably optimistic about the future,” said Scott Kessler, an analyst at S&P Capital IQ, who still remains skeptical about the company’s direction, in part because of the risks associated with being in the cross hairs of the European Union.

Investors were also pleased by comments that suggested Google could position itself for a shareholder payout it long resisted by buying back stocks or paying dividends.

Google said its advertising on YouTube and mobile devices helped get the results that led the company to beat profit and revenue expectations, though Porat, citing competitive reasons, did not provide as much of a detailed breakdown of those results as investors wanted.

“While it all sounded positive, the selective nature of the data-points and limited number of absolute figures the company has provided diminishes what is probably still a very good story,” wrote analyst Brian Wieser of Pivotal Research Group, in a note to investors Friday.

A study released earlier this week by Adobe’s research division showed that Google is lagging Facebook in the number of display ads seen by consumers. An Adobe consumer survey also found that consumers find Facebook ads more relevant and of genuine interest than the ads on YouTube.

But Porat spoke positively of the performance of YouTube’s TrueView advertising platform, which only charges the advertiser when a viewer chooses to watch a video ad.

“While management also highlighted that desktop search continued to grow, we believe mobile and YouTube were the key revenue growth drivers for the websites,” wrote Kerry Rice of Needham & Company, noting that TrueView ads were probably the primary growth driver of paid clicks on Google websites, which increased 30 percent from the same quarter last year.

Above: Google’s new chief financial officer, Ruth Porat, delivered her first quarterly earnings report Thursday, and it beat Wall Street expectations and helped drive a stock market spike on Friday.


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  • Ilya Geller

    Google uses SQL, Structured Query Language – SQL obtains patterns from queries and statistics on how often they are used; neither the queries, nor patterns, nor statistics have anything in common with data itself, they are EXTERNAL.

    I, however, discovered and patented how to structure any data without SQL, the queries – INTERNALLY: Language has its own INTERNAL parsing, indexing and statistics and can be structured INTERNALLY. (For more details please browse on my name ‘Ilya Geller’.)

    For instance, there are two sentences:
    a) ‘Sam!’
    b) ‘A loud ringing of one of the bells was followed by the appearance of a smart chambermaid in the upper sleeping gallery, who, after tapping at one of the doors, and receiving a request from within, called over the balustrades -‘Sam!’.’
    Evidently, that the ‘Sam’ has different importance into both sentences, in regard to extra information in both. This distinction is reflected as the phrases, which contain ‘Sam’,
    weights: the first has 1, the second – 0.08; the greater weight signifies stronger emotional ‘acuteness’; where the weight refers to the frequency that a phrase occurs in relation to other phrases.

    SQL cannot produce that statistics – SQL is obsolete and out of business.
    Google is obsolete and out of business.