http://www.variety.com/VR1117921578.html


Google gains bode ill for radio and TV
Search engine reports $369.2 mil quarterly profit

By BLOOMBERG
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What's good for Google is likely to be bad for traditional media, especially radio and television.

The eye-popping revenue and profit growth reported last Thursday by the most-used Internet search engine -- profit up more than five-fold to $369.2 million for the quarter and sales nearly doubling to $1.26 billion -- came from surging Internet advertising.

"The numbers from Google are, by any definition, spectacular," said Bob Parker, deputy chairman of Credit Suisse Asset Management in London, which oversees $335 billion. "There's going to be a clear shift from radio and TV advertising to Internet advertising. That clearly benefits companies like Google."

The stock, sold to the public at $85, rose $11.59 to close Friday at $215.81 in Nasdaq composite trading after earlier surging to $224. That surpassed the previous record of $216.80 after last quarter's earnings report. Yahoo, which this week also reported a surge in profit and record sales, fell 71¢ to $35.16.

The increase in Google's stock price pushed the company's market value to $60 billion, more than media congloms such as Viacom and Disney, not to mention industrial icons such asGeneral Motors, Ford and Hewlett-Packard.

Google shares are worth $275 to $290 each, Goldman, Sachs analyst Anthony Noto in New York said Friday. Noto, the top-ranked Internet analyst by Institutional Investor magazine, called Google's earnings report "outstanding."

Record revenue from Google and Sunnyvale, Calif.-based Yahoo illustrates the growing shift of advertising spending from traditional media such as newspapers and broadcast television.

Internet advertising "is probably about 3 or 4 percent of worldwide spending but growing very rapidly," WPP Group chief executive officer Martin Sorrell said. WPP is the world's second-biggest advertising company.

"We are seeing it overtake radio, for example, in the U.K. and online purchasing is growing at a prodigious rate in the U.S.," Sorrell said.

Google's quarterly sales eclipse the combined revenue of the New York Times, the third-largest U.S. newspaper company and Dow Jones, publisher of the Wall Street Journal.

Damn, I never realised Google was worth so much!

It's a search engine... Disney has some mouse with big ears :blink:

This is what happens when stocks sell at a PE of 153.

This is what Disney-big looks like: $30.1 billion in sales, $2.3 billion in net income.

That article just blew me away. Fuck.. that's just nuts.

actually Goog is at about 37x next years PE
which is bellow its growth rate.
So goog value doesnt seem unreasonable to me just yet.

WOW! I knew Google was big, but not this fucking big! :huh:

:o Thats just insane!

Anyone know how many search's are done on google per day or month?

about 250m a day

about 250m a day [/b][/quote]
250 mil :zoinks:

I can see how they are worth so much now... It's frightening!