Google for $1,000 Has Quite a Cha-Ching to It
Google topped $1,000 this morning, surging to an all-time high of $1,007.40. It’s now hovering below the benchmark, but still up more than 10 percent. That’s based on third-quarter earnings that showed growth and slightly exceeded expectations.
Most importantly, there were no surprises in the old business: Web advertising, with its new unified-across-all-screens “enhanced campaigns”; and good progress in last era’s big bets — mobile and YouTube (and mobile-and-YouTube).
Google’s business honcho Nikesh Arora noted that mobile ads are: 1) driving conversions (16 percent more than expected for American Apparel, but that’s an extremely anecdotal stat); 2) resulting in phone calls: 40 million calls driven by Google ads per month, double a year ago; and 3) driving in-store traffic (he didn’t even give an anecdotal stat on that).
Meanwhile, Arora said that spending by consumer-packaged goods advertisers on YouTube grew 75 percent in the past two years, and called YouTube “our brand torch-bearer.”
Motorola had more losses — $248 million, compared to $192 million last year — but this was the quarter it launched Moto X, and more devices made with the new Google leadership are expected soon, so it’s not dragging down the whole ship just yet.