Google Shares Rise as Company Reassures Analysts
Google Inc. provided few significant new details about its business during highly anticipated presentations for securities analysts yesterday. But analysts said they were reassured by the company's optimism about growth prospects, and investors pushed up Google's share price throughout the day.</br></br>The meeting at Google's Mountain View, Calif., headquarters followed a turbulent month for the company's stock. Google's recent announcements of fourth-quarter profit fell short of analysts' consensus estimates, spooking investors. On Tuesday, Google's chief financial officer warned growth was slowing. In that climate, many analysts and investors have said the meeting was an important event for determining investor sentiment.</br></br>At 4 p.m. in Nasdaq Stock Market composite trading, Google was up $11.65, or 3.2%, to $376.45. That was off $13.93 from the Monday price and down 21% from a 52-week high of $475.11, as the stock still hasn't recovered from its roller-coaster ride. Google continued to rise in after-hours trading, up $6.25 to $382.70.</br></br>Google executives pointed to what they described as bright prospects for the company's core search business and initiatives such as search services that provide results linked to specific geographic locations. "We believe our business is exhibiting very strong fundamentals and very strong growth potential," said Chief Financial Officer George Reyes.</br></br>Mr. Reyes devoted much of his presentation to questions he said analysts had raised. He said Google's capital expenditures, primarily for computer and network equipment and facilities, in 2006 would represent a "substantial increase over and above" last year's $838 million.