MARKET WATCH

Google Shares Soar Past Targets

Ads lead to a 25% revenue surge in 3rd quarter.

Google Inc. reported Thursday it blew past its Wall Street earnings targets, showing the strength of the Web-search company’s advertising business. In the third quarter alone, Google reported a 25 percent increase in overall revenue due to ad sales. Some market analysts feared Google had been spending recklessly on the new Android software, acquisitions, and even automated cars, and also that the company was ignoring the threat posed by social-networking giant Facebook. Google also debuted Google Instant this quarter—which helped account for a 16 percent increase in “paid click” in Google’s advertising. Additionally, the company added more than 1,500 employees to their payroll in the third quarter—making their operating expenses nearly $1 billion more than they were a year ago. Google’s shares rose 9 percent Thursday, the largest single-day gain since Nov. 2008.