MOUNTAIN VIEW, CALIFORNIA - Google reported second quarter net income of $721.1 million (€570.54m; £389.9m), up by 77% from $342.8m in the year-ago period - significantly bettering analysts' expectations.

Gloated analyst Safa Rashtchy, of Piper Jaffray & Co: "This is one of the best outcomes we could have for Google in what is considered a slow quarter." He also observed that Google is not only able to control expenses but also appears to be gaining market share against Yahoo and Microsoft.