(Reuters) – Google Inc’s shares closed up 16.3 percent at $699.62 yesterday, adding about $65 billion to its market value, as strong growth in YouTube viewership eased investor concerns about Facebook Inc’s push into video.
Google’s class A shares chalked up their largest single-day percentage change in more than seven years on Friday.
The surge, which comes a day after it reported better-than-expected profit for the first time in six quarters, sent the Nasdaq composite index to a record intraday high.
The rise in Google’s market value was more than the total market capitalization of Caterpillar Inc, the world’s biggest construction equipment maker.
Google’s shares hit a record high of $703, valuing it at $471.50 billion and cementing its position as the world’s second most valuable company after Apple Inc.
At least 27 brokerages raised price targets on Google’s stock, with analysts also welcoming new Chief Financial Officer Ruth Porat’s emphasis on disciplined spending.
At the highest price target of $800, Google would be valued at $545 billion. Apple is valued at about $740 billion.
The energy brought to Google by Porat, who joined in May from investment bank Morgan Stanley, is likely to drive the stock in the short and medium term, analysts say.
