Google Inc saw its shares surge on Friday morning by over 14% adding close to $50 billion to its overall market value, as YouTube experienced strong growth in revenue from mobile ads which allayed the worries its might be hurt from the push into video by Facebook.
The surge in the price of stock came just one day after the company reported revenue that was better than had been expected and profit for just the first quarter of the past six.
Shares of Google, the second most valuable company in the world behind just Apple, hit a record high on Friday of $688.80, which valued the search giant on the Web at close to $423 billion.
Video ads online could be an opportunity of more than $17 billion in just the U.S. by 2017 and Google’s YouTube seems best positioned to be the benefactor, wrote a Wall Street analyst on Friday.
Google said YouTube watch time was up 60% during the second quarter and its video service drew in more views between the ages of 18 and 49 than any cable network in the U.S. on mobile devices.
Facebook and Google are attempting to woo the big corporations to market products via their online videos.
An edge is held by YouTube over Facebook, as its monetization platform is more mature and seems to attract the web’s best content, said one market analyst.
Google announced that the gap between desktop and mobile was closing on the cost per click or the average price for its online ads.
Mobile cost per click should exceed those of desktops over the long term, said the analyst. Google’s CPCs dropped by 11% during the quarter, but that does not tell the full story.
TrueView ads from YouTube were advertisers pay just when the users do not skip the ad, cost less than the traditional search ads.
Advertising revenue for Google was up 11% to end the quarter at $16.02 billion with its paid clicks increasing by 18%.