NEW YORK (AP) - Shares of Google Inc. slipped in premarket trading Friday after the Web search giant posted slower quarterly sales growth than usual. Analysts remained upbeat on the company.
Google’s revenue grew 6 percent to $5.5 billion during the first quarter, the company said Thursday, the first quarter of less than double-digit growth since the company went public in 2004.
Ahead of the market opening Friday, shares dipped $3.74, or about 1 percent, to $385.
But Google, based in Mountain View, Calif., topped Wall Street earnings forecasts with tight cost controls and analysts said the company remains well positioned to continue its dominance of the Internet search business when the economy improves. The company’s profit climbed 9 percent.
“Google demonstrated impressive discipline in managing costs,” Jefferies & Co. analyst Youssef Squali told clients in a note Friday.
He reiterated his “Buy” rating on Google shares, though he cut his price target for the stock to $442 from $450.
Google lowered its operating expenses by 8 percent from the fourth quarter and trimmed its work force for the first time.
“The bottom line is that we believe Google is being prudent about the current macroeconomic environment,” said Thomas Weisel analyst Christa Quarles, who holds an “Overweight” rating on shares.
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