Stock Watch: GoTo.com Exceeds Expectations

Pay-for-placement search engine GoTo.com (Nasdaq: GOTO) was a big winner on Wall Street on Tuesday, one day after the company announced impressive third-quarter results that surpassed analysts’ estimates. Shares of GoTo.com thundered ahead nearly 40 percent, gaining 22-3/4 to an all-time closing high of 80.

After the markets closed on Monday, GoTo.com reported third-quarter revenue of $8.4 million, a 133 percent increase over the $3.6 million reported in the second quarter. The company had a third-quarter net loss of $7.6 million, or 18 cents per share. This loss was considerably less than the 32 cents per share analysts had expected the company to lose. Also notable is the growth of GoTo.com’s advertiser base. At the end of the third quarter, the company had 16,000 advertisers, a 60 percent increase from the 10,000 it had at the end of the second quarter.

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