NEW YORK (AFP) - Google Inc.'s shares roared 15.43 percent higher in a frenzied reaction to the internet search engine's lavish profits since floating in August.
The stock shot up 23.05 dollars, or 15.43 percent, to close at 172.43 dollars, a rate of climb reminiscent of the headier days of the late 1990s Internet bubble.
Analysts said a target of 200 dollars a share was now in sight.
"The suspense is over, it's all good," gushed a report by Citigroup Smith Barney, describing the Google result as an "exceptionally strong first quarter as a public company."
After the market close Thursday, Google announced its net profit and sales had more than doubled in the third quarter.
Net profit leapt 154.5 percent from a year ago to 52.0 million dollars in the three months to September 30, the group said in its first public announcement since a huge flotation in August.
Earnings per share climbed to 19 cents from eight cents.
Sales doubled, rising 104.6 percent to 805.9 million dollars and beating market forecasts.
Google said net revenue -- after "traffic acquisition costs", the amount it pays partners for directing sales its way -- amounted to 503 million dollars, up from 250 million dollars a year before.
"We are very pleased with the results of this quarter. Record revenues, robust margins and cash generation all illustrated strong performance and execution over the last quarter," said Google chief executive Eric Schmidt.
When it floated in August, Google had to slash the initial public offering price to 85 dollars a share after an auction inspired muted interest. It initially had hoped to get as much as 135 dollars a share.
That price now looks like a bargain.
"Google's third-quarter results handily exceeded the most bullish projections," said Jordan Rohan, of Schwab Soundview Capital Markets, who had tipped a stock price of 180 dollars a week ago.
But some analysts warned the enthusiasm was going too far.
Google had sold to the public about 21.6 million shares, only a small portion of the total capital, creating a tight market, said ThinkEquity Partners analyst John Tinker.
"The price is absurd, artificial," he said.
Since the close of business August 19, the technology-packed Nasdaq index had climbed 6.6 percent -- 11 times slower than Google.
For Wall Street, Google's innovation has come in what is known as paid search listings -- or keyword advertising -- allowing an advertiser to direct an ad to a Web user based on the type of search conducted.
It was founded in 1998 by computer whiz kids Sergey Brin, 30, and Larry Page, 31.
10/22/2004 - 20:44 GMT - AFP