‘Worst of recession over’ as Google exceeds expectations

| October 16, 2009 | 0 Comments

Internet search giant Google believes the worst of the recession is over after it posted a rise in third quarter profits.

Google’s results suggest that the demand for online advertising is growing after the company reported net profit of $1.64 billion (£1 billion) during the 3-month period - a 27% increase compared with the same period a year earlier.

Meanwhile, the company exceeded analysts’ expectations by announcing that revenue for the period was $4.38 billion - analysts had expected $1.29 billion.

Google chief executive Eric Schmidt said: “The worst of the recession is clearly behind us and we now have the confidence to be optimistic about our future.”

The company is seen as a barometer for internet commerce as its search engine is the heart of the internet’s largest advertising network.

According to Coin Gillis, senior analyst at Brigantine Advisors, “Google has no competition. Yahoo is withering on the vine and [Microsoft's] Bing is too tiny now.”

Shares in Google have soared by 72% this year and following its results gained $7.76 (1.5%) to $537.67 in extended trading, closing at $529.91 on the Nasdaq stock market.

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