Google Sees Giant Opportunity Ahead

Google Inc. Chief Executive Eric Schmidt said he saw no limit to the Internet search company’s ability to increase advertising revenue, a bullish outlook that allayed investor concerns about slowing growth.

The remarks, at a meeting for analysts Thursday in Mountain View, Calif., prompted a 3.2% rise in the company’s shares as Schmidt soothed worries sparked this week by comments from Chief Financial Officer George Reyes.

Schmidt said Google planned to win advertising sales in every medium from the Web to radio and print, a vast worldwide market.

“We see ourselves in every one of those segments,” Schmidt said. “It will be possible in the next few years.”

The event offered a rare chance for analysts to quiz Google, which refuses to provide profit forecasts or such information as the number of Internet searches each month.

Investors failed to anticipate a slowdown in earnings growth last quarter that prompted the shares to plunge. The stock tumbled again Tuesday, after Reyes surprised investors by saying growth will slow.

“Google’s not a bubble stock,” said Roger McNamee, a founder of Silicon Valley venture capital firm Elevation Partners. “You should be careful before you dismiss it as no longer a growth company.”

Google shares gained $11.65 to $376.45 on Thursday.

The stock has dropped 9.3% this year on concerns about slowing growth.