Newspaper Report Has Google in a Spin

Google, the California-based internet search engine, was embroiled in a spat with its local newspaper yesterday as traders on Wall Street pumped its shares higher ahead of its first quarterly figures as a public company.

Google dismissed as "inaccurate" a report in the San Francisco Chronicle that said the dotcom company expected to more than double its number of advertisers over the next four years.

The newspaper, which claimed to have seen internal company documents, said Google expects to have more than 650,000 advertisers in 2008 compared with 280,000 this year.

Google hit back, saying: "We believe the information printed detailing Google's projected advertiser-customer growth is inaccurate."

But traders and analysts are seizing on any potential news about Google's growth prospects because the company has made it plain it will not issue trading guidance to the market.

This attitude has created intense speculation around Google. Since it floated in New York at $85 (£47) a share in August, the stock has rocketed by about 70%, with traders expecting very good earnings news. Google was due to publish its first quarterly trading figures since its IPO after the close of dealing on Wall Street last night.

Analysts said they expect the business to report third-quarter earnings of 54 cents a share on sales of $452m.

They have already pencilled in fourth-quarter profits of 63 cents a share with sales increased to $520m.

The technology sector is certainly booming on the other side of the Atlantic. Shares in eBay gained more than 6% yesterday after the online marketplace reported a 77% increase in third-quarter profits on Wednesday.

Ebay made $182.3m in the third quarter compared with $103m in the previous year as sales rose to $805.9m - about $20m more than expected - from $530.9m.