Revenue rose 33% and net income climbed 26%. Google reported net income for the period ending Sept. 30 of $2.73 billion, or $8.33 a share, up from $2.17 billion, or $6.72 a share, a year ago. Excluding the cost of stock options and the related tax benefits, Google’s third-quarter profit was $9.72 a share. Analysts had expected $8.74 a share.
The stock has responded to the robust earnings and is hitting $600 in early trading.
Analysts are now raising 2012 EPS to over $40 a share and price targets to $800.
Google is a hedge fund favorite. Only Apple (APPL) is more loved and widely owned by the hedge fund community.
The one guru who loaded up on Google shares is Glenn Greenberg of Brave Warrior Capital. Greenberg significantly added to his GOOG position last quarter and it was over 12% of his portfolio. In the last month as Google has rebounded from $500 to $600, Greenberg's portfolio has risen by over $29 million.