This raises its market capitalisation of the company that first generation entrepreneurs Larry Page and Sergei Brin founded to over $155 billion and makes it the US' third largest IT company after Microsoft and Cisco.

There are only six companies listed on the Nasdaq, including legendary investor Warren Buffet's Berkshire Hathaway, that trade above the $500-mark.

Google has shown strong growth with growing revenues from online advertising, even as Yahoo! its closest rival reported a 38-per cent decline in quarterly profits.

In comparison, Google's profits in the same quarter ending September had almost doubled to $733.4 million.

Google's business model has been generating revenues from advertising. It displays its advertisements adjacent to the search results it generates from keyword searches. Last month, in $1.65-billion deal, it acquired video-sharing website YouTube that would enable it to become a provider of web-based video advertising, which would also appear along side its search results.

Moreover, the company has been looking at expanding its presence from web advertising to booking space for the print media for its online advertising clients. (See: ) It also plans to target radio advertising.