Google Stock Soars Over $1,00 After Positive Q3 Earnings
The stock market is now rewarding that very solid performance, said Olds. "Google has been like that solid 'A' student in the classroom that maybe you don't notice all that much until they suddenly get that full-ride scholarship to MIT." According to the latest financial figures, Google's GAAP (generally accepted accounting principles) operating income in the third quarter of 2013 was $3.44 billion, or 23 percent of revenue, compared with operating income of $2.74 billion, or 21 percent of revenue, in the third quarter of 2012. The company listed its advertising traffic acquisition costs (TAC) for the quarter at $2.97 billion, or 24 percent of advertising revenue. Revenue for Google's Motorola Mobility unit sank to $1.18 billion, or 8 percent of consolidated revenue for the quarter, compared with $1.78 billion, or 13 percent of consolidated revenue one year ago, according to Google.In July, Google posted a second-quarter profit of $3.23 billion, which fell short of analysts' expectations, according to an earlier eWEEK report. Total revenue for the period grew 19 percent from the same quarter in 2012 to $14.11 billion. In April, Google's Pichette revealed at a technology conference that the company had stashed away $48 billion in cash to give it free rein and lots of financial options in the marketplace should tantalizing acquisition targets show up in its cross hairs. In July 2012, when Google posted its first results since it acquired Motorola Mobility, the company posted second-quarter revenue of $12.2 billion, a 35 percent year-over-year increase from 2011. Google's $12.5 billion acquisition of Motorola was completed in May 2012. In 2012, Google raked in revenue of $50.18 billion and $10.7 billion in profit for the year, surpassing the $50 billion annual revenue plateau for the first time in the company's history, according to an earlier story by eWEEK. Google had earned $38 billion in revenue and profits of $9.7 billion in 2011. In October 2012, Google suffered an embarrassing early release of its third-quarter Form 8-K report to the U.S. Securities and Exchange Commission's Website, which meant the financial data was accidentally available four hours before the stock market was set to close. That accidental report release triggered an early sell-off in Google shares, with stock prices dropping by about 9 percent before the sale of shares were eventually halted.
Google presently has about 46,421 full-time employees, including 4,259 in its Motorola Mobility unit, according to the company. That compares with 44,777 full-time employees, including 4,599 at Motorola Mobility, on June 3.