According to Wall Street Analysts, shares of Google were incresed by more than 7 percent in pre-market trade Oct 14, a day after company declared a 26-percent hike in third quater earnings with benefiting from a growing ad online market and sharper research focus. The robust demand from advertisers in emerging markets such as in Asia, as well as strength in its mobile and display advertising businesses increased Google's financial results during the third quarter.
The increasing revenue growth in Google's international business is gained from emerging markets and its mobile business contributed to the 28-percent increase in paid click growth, said analysts.
According to Thomson Reuters StarMine data, 13 analysts rate Google a "strong buy," 20 rate the stock a "buy" and 4 others rate it a "hold," with a mean price target of $716.17.
Analysts at J.P. Morgan Securities said they believe mobile was the biggest factor in Google's sharp growth in paid clicks. The income run rate for Google's mobile business is more than $2.5 billion in compared to $1 billion just a year ago. It has increasing its revenue into its sharp growing mobile business which competes with iPhone maker Apple Inc.
The increased in mobile revenue focused the importance of Google's Android mobile software. Which is already the world's most used smartphone platform and supports the rationale for its Motorola Mobility Holdings deal, analysts added.
The analysts expects this trend to continue as Google has more than 90 percent share of mobile serach even higher than on the desktop.