Google beat Wall Street's profit and revenue expectations for the third quarter despite rising expenses, sending its shares up about 6 per cent in after hours trading.
The world's largest Internet search engine today posted a third-quarter net income of $2.17 billion or $7.64 a share, excluding items, surpassing Wall Street's average estimate of $6.69 a share, according to Thomson Reuters I/B/E/S.
Net revenue, which excludes fees that Google pays to partner websites, came to $5.48 billion, versus expectations for $5.27 billion.
Investors worry that the company, seeking new sources of growth, is spending recklessly on initiatives such as its Android mobile phone software, acquisitions, renewable energy projects and even automated cars, with uncertain returns. At the same time, social networking giant Facebook poses a growing threat to Google's online advertising business.
Shares in the company rose in extended trading to $582.00, from a regular session close of $540.93 on Nasdaq.
Reuters