• US stock market daily report (July 17, 2015, Friday)

    Internet web search giant Google Inc. (GOOG-Nasdaq) tacked on a mere $40 billion to its market value Friday after reporting earnings that beat forecasts for the first time in six quarters. Earnings were helped by strong advertising revenue and disciplined spending.

    From the same quarter during 2014, advertising revenue grew 11% to $16.02 billion, while the number of ads or paid clicks rose 18%. Cost per click or the average price of online ads, fell 11%, but was more than offset by the increase in ad volumes.

    As more consumers access Google from mobile devices such as smartphones and tablets, advertising revenue has been under pressure since those rates are typically lower.

    During Q2, expenses rose 10% to $12.9 billion from same quarter in 2014 and remained at 73% of revenue. From Q1, expenses grew by $91 million and as a percentage of revenue, declined by 1% point.

    Ruth Porat, CFO for Google said, "The decline in quarter-over-quarter operating expenses reflects, in part, discipline in expense management and, in part, lower legal expenses than in comparable periods."

    Google shares were higher by 15% into late morning trading on Friday.

    Google is the 2nd most valuable publicly traded U.S. company, second only to Apple Inc. (AAPL-Nasdaq).

    Contributed by Millennium Traders
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