According to Google executives, Google benefited from the fact that advertisers were more willing to spend on search engine ads during the third quarter and that more consumers shopped online, driving up advertising revenue for the company. Its revenue growth from last quarter to this quarter marks its strongest quarter-to-quarter revenue growth since the last quarter of 2007.

Google shares have surged 80 percent since mid-March, rising 3.2 percent to $547, a fact that signals that investors are confident in the Internet search giant’s potential. Analysts widely considered that Google would be among the first companies to experience growth as a result of economic recovery, so Google’s most recent results may be a good sign for the economy.

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Post from: EveryJoe

Google Ready to Grow

Prior to the release of Google’s second quarter report, Google shares were at around $442. Once the report became public, Google shares dropped to around $428 rather quickly.

Google’s net income for the second quarter of 2009 was approximately $1.5 billion. Compared to the second quarter of 2008, that number represents an almost 20% increase.

The number that investors didn’t like was the company’s revenue growth. With revenue of $5.52 billion in the second quarter, Google only saw a 3% raise from last year.

The reason why Google was able to post such a high net income is being credited to Google cutting some of the fat out of their budget. Google also saved money by trimming their workforce.

Representatives from Google point to the poor economy as the reason why their numbers weren’t even more impressive. Keep an eye on Google shares to see if investors believe that explanation.

Google (Image: Flickr)

Post from: EveryJoe

Google Revenue Slowing, Shares Fall