Search-engine giant Google is flying high Friday, after a strong second-quarter financial performance and hints at a possible dividend or buyback in the future sent shares in the search engine giant soaring.
Today, shares in Google (GOOG) have reached an all-time high of $668.25, rising more than 15% in trading Friday morning. Analysts and investors were pleased with new CFO Ruth Porat’s assurance that the firm would reign in expenses, and at the tantalizing possibility that the Mountain View company would start giving some of its substantial cash pile back to investors.
Even after shares jumped, analysts like Morningtars’ Rick Summer think the company’s shares are still cheap. “Google posted strong second-quarter results, demonstrating robust demand in its core business and stronger expense discipline,” Summer wrote in an analyst note. “We continue to believe the shares are undervalued, even after the strong move after results were announced. We are sticking with our wide moat rating and $715 fair value estimate at this time. ”