Google shares hit an all time high

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Google shares at an all-time high

Google's share price has rocketed overnight as investors reacted well to the better-than-expected third quarter results.

The share price rose by 6 percent in after-hours trading, taking it to the record-breaking figure of $941.25 (£581.58).

This surge came after Google reported profits of $2.97bn (£1.84bn) in the third quarter of 2013, higher than the $2.18bn (£1.34bn) made in Q3 in 2012. Revenue had also increased 12 percent year-on-year, reaching $14.9bn (£9.2bn).

A reduction in cost-per-click (CPC) between 2012 and 2013 was also announced, with an 8 percent dip taking place in the third quarter. This comes after a 6 percent decrease in the second quarter.

The cost-per-click has steadily been driven down as a result of a rising number of consumers searching on mobiles devices, where advertising rates are lower. However, paid clicks have grown by 26 percent since 2012. JMP Securities analyst Ronald Jersey has said: "That's the key story, their ad volume growth is outpacing the decline in cost-per-clicks."

In reaction to this shift in user activity, Google has also recently introduced Enhanced Campaigns, bringing together ads intended for mobile and PCs.

Larry Page bows out of analyst conference calls

During the Q3 2013 conference call, co-founder and CEO Larry Page announced that he will no longer be taking part in the updates. Page said: "I know you all would love to have me on, but you're also depending on me to ruthlessly prioritise my time for the benefit of the business".

Natalie Booth, head of search at theEword, has said: "Investors have been paying close attention to how Google is overcoming users' transition to mobile. With paid clicks increasing well year-on-year, this is likely to be a good sign for those investors."