Google Inc., owner of the world’s largest search engine, rose to a record amid optimism about its growth prospects from online advertising revenue.
The shares increased 2.1 percent to $749.38 at the close in New York, the highest since its initial public offering in August 2004. Google has advanced 16 percent this year.
Google, based in Mountain View, California, is benefiting from rising demand for its advertising products, including search, display and mobile. The company is expected to become the leader in the U.S. for display advertising this year, including banner ads, replacing Facebook Inc., according to EMarketer Inc.
Google’s U.S.-display ad revenue will jump 39 percent to $2.31 billion this year, New York-based EMarketer estimates.
“The stock has performed very well in recent months, suggesting that the market is coming around to seeing how durable the company’s cash flow generation will be,” Brian Wieser, an analyst at Pivotal Research Group, wrote in a research note today. “That secular expansion appears likely to overcome any macro-economic headwinds may also be a contribution factor to investors’ positive views towards Google.”