SHARES in Google reached a record high yesterday after soaring advertising revenues helped the internet search engine group to leap past Wall Street forecasts.

Analysts moved to raise their ratings after the company said its first-quarter sales had nearly doubled, while quarterly profits rose sixfold. Revenues in the three months to March 31 rose to $1.26 billion (£658 million), compared with $652 million in the same period last year. Net income increased to $369 million, from $64 million last time.

Eric Schmidt, chief executive, said that the group had benefited from the growing willingness of advertisers to use the internet. “This was a very strong quarter for Google,” he said. “We continue to execute well and we have been able to take full advantage of the growth in online advertising.”

Google makes most of its money from advertising, with companies bidding to have their adverts linked to key search words. The advertisements that the user sees on screen are determined by the search terms they enter.

Analysts at Piper Jaffray, the US research firm, predict that search engines will attract $7.9_billion of advertising this year. Commission payments to partners that deliver users to Google rose to $462 million from $271 million last time.

Google has beaten analysts’ forecasts in three successive quarters since making its debut on Nasdaq last August. The shares, which floated at $85, reached $224 yesterday before falling back to close 5.7 per cent higher at $215.81. Jason Avilio, an analyst at First Albany in New York, reiterated his buy rating on the stock and raised his price target from $250 to $283.

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