Google hits $600

chart_ws_stock_googleinc.top.png By David Goldman, staff writer


NEW YORK (CNNMoney.com) -- Shares of Google rose 11% Friday, reaching $600 for the first time in more than nine months, after the company posted solid quarterly earnings that impressed investors.

Google's (GOOG, Fortune 500) stock rose as much as $59.07 to $600 a share in midday trading, before sliding back a bit. It was the stock's highest level since January.

Late Thursday, Google reported a third-quarter profit that rose 32% on the back of stronger search ad fees from advertisers. But the company's results were also buoyed by its non-core businesses, like YouTube, display advertising and mobile.

Google defied skeptical investors and analysts who feared that the search giant would never find a a significant new revenue stream besides search advertisements. In the past, the company has been tight-lipped about the financial details of its non-search businesses, leading some analysts to speculate that those product lines were insignificant to the company's overall revenue.

But on Thursday, Google demonstrated how it is building new, multi-billion dollar businesses.

For instance, Google has made tremendous headway in mobile. Its Android operating system will command 17.7% of the global mobile device market by year's end, according to a Gartner forecast, making it the second best-selling smartphone operating system, behind Nokia's (NOK) Symbian OS and ahead of Apple's (AAPL, Fortune 500) iOS. That's stunning, considering it entered the market just two years ago.

Google said its mobile advertising business was doing sales of $1 billion on an annualized basis. Display advertising, which includes images rather than textual ads, is on pace to be a $2.5 billion business annually. The company said its display business is likely the third largest in the world, behind AOL (AOL) and Yahoo (YHOO, Fortune 500).

Investors had slammed Google's stock this year, sending it down by as much as 30%. Shares started to rebound in September, but were still down 13% before Friday's market open. But Google's impressive quarterly numbers sent shares soaring, and the stock is now down just 3% for the year.

Still, shares of Google remain far from their all-time high of $747.24, set in November 2007. To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 18,146.84 66.70 0.37%
Nasdaq 5,116.12 24.03 0.47%
S&P 500 2,124.49 6.80 0.32%
Treasuries 1.93 0.02 0.83%
Data as of 10:05am ET
Company Price Change % Change
Applied Materials In... 20.14 -1.66 -7.64%
Apple Inc 132.75 2.47 1.90%
Microsoft Corp 47.59 -0.28 -0.58%
Bank of America Corp... 15.69 0.05 0.33%
Facebook Inc 82.65 1.12 1.37%
Data as of 9:51am ET

Sections

A major earthquake was the last thing Nepal needed. Even before one of the country's major fault lines rumbled to life, the country was beset by challenges. More

Google and Facebook have built tools, such as Person Finder and Safety Check, which help people locate their loved ones in Nepal. More

A Girl Scouts Cookie Oven rolling out to Wal-Mart, Target, Kmart stores this summer will let you bake those iconic thin mints right at home. More

Imagine having a three-day weekend every week and being paid the same full-time salary. It can be done if your employer offers you the option of a compressed workweek. More