Friday October 26 1:28 PM ET
Overture Services Rallies 30 Percent After Report
PALO ALTO, Calif. (Reuters) - Shares of the Internet search service Overture Services
Inc. (Nasdaq:OVER - news) rallied about 30 percent on Friday, following the company's
report late Thursday of its first net profit, which blew past analysts' expectations.
Overture, which features only paid listings in its search service, has shown steady growth
throughout the year as both traditional search services and other content sites that rely on
online banner ads, have tended to stumble.
Shares of Overture, which was formerly named GoTo.com, rose $5.60, or 29.4 percent, to
$24.65.
The company's paid listings appear to offer advertisers a relatively cheap way to reach a highly targeted audience, which has
remained popular during the soft economy.
In a research report Friday, Merrill Lynch analyst Henry Blodget noted that in addition to achieving a profit and a rapid rate of
sales growth, Overture has increased operating margins and grown the rate it charges its advertisers as well.
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