Google adds $60bn to market value as shares hit new high

Google shares soared to all-time highs on Friday with the tech giant adding about $60bn to its market value.

Google's shares were 16% up in afternoon trading as investors cheered profit figures that showed strong advertising growth on mobiles and its YouTube arm.

The price rise took the company's market size well above $400bn (£256bn).

The search giant's market capitalisation makes it second only to Apple, which is valued at $745bn.

On Thursday, after trading closed, Google reported that second-quarter net income was $3.93bn in the three months to end-June, up from $3.35bn for the quarter a year earlier.

The results ended six consecutive quarters in which Google's earnings fell short of analysts' targets

Finance chief Ruth Porat highlighted the growth in mobile advertising and time people are spending streaming video's on YouTube.

She said YouTube has more than one billion users and that the number of people in the key 18-49 age group who watch its videos on mobile devices was greater than the number watching cable television.

Reuters reported that at least 27 broking firms raised their price targets for Google shares, with one predicting that the stock could rise as high as $800.

As the market opened on Friday, Google added an instant $50bn as the shares jumped. In late afternoon trading the price was up $94.43 to $696.12.

Deutsche Bank issued a research note on the profit figures called "Dawn of a New Era?" - adding that it "feels like it".