1,000 Reasons to Love Google's Third-Quarter Earnings Report
It's a great day to be a Google investor. Shares are hitting all-time highs today, up as much as 13% following the release of Google's third-quarter earnings yesterday afternoon.
Google's top-line revenue grew by 12%. Earnings grew by 35%, and the volume of clicks for search was up 25%. This helped to offset an 8% decrease in the average cost-per-click. Motley Fool analyst David Meier thinks beyond the great numbers, there's a hidden story here. There's a business ordinary investors aren't paying attention to, which just posted growth of 85%. In just a few years, it now accounts for 8% of overall revenue. Google is known primarily for search, but this growing segment shows that Google continues to find new ways to create value.
Shares have returned 40% year to date, and today have crossed the $1,000 mark. Despite this, David thinks Google is still a buy. He argues there's simply not a better cash-flow machine than Google.
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The article 1,000 Reasons to Love Google's Third-Quarter Earnings Report originally appeared on Fool.com.David Meier has no position in any stocks mentioned. Erin Kennedy has no position in any stocks mentioned. The Motley Fool recommends Google. The Motley Fool owns shares of Google. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.