Global Markets: Alphabet set to open at record high; mobile ads drive revenue

New revenue streams such as mobile and video advertising should continue to propel earnings of Google parent Alphabet Inc (GOOGL.O), whose shares were set to open at a record high on Friday following better-than-expected results, analysts said.

The company's search traffic on mobiles surpassed desktop traffic worldwide for the first time in the latest quarter.

Alphabet's shares were up nearly 10 percent at $746.95 in premarket trading, far above the $713.33 record high set by Google - the company's former name - in regular trading in July.

A 10 percent rise equates to about $46 billion in market value. This would give Alphabet a market cap of about $519 billion, cementing its position as the second-most valuable stock after Apple Inc (AAPL.O), worth about $660 billion.

Shares of Amazon.com Inc (AMZN.O) and Microsoft Corp (MSFT.O), which also posted better-than-expected quarterly results on Thursday, also jumped in premarket trading, pushing up U.S. stock index futures.

At least 14 brokerages raised price targets on Alphabet's stock on Friday. J.P. Morgan and Jefferies were the most bullish, both raising their targets to $900.

"We think it's not long before mobile clicks surpass desktop, which we expect will provide a nice tailwind to cost-per-clicks, magnified by a tighter gap between mobile and desktop ad pricing," J.P. Morgan analyst Doug Anmuth said.

Alphabet said the number of paid clicks, which require advertisers to pay only if a user clicks on the ad, rose 23 percent, compared with 18 percent in the previous quarter.

With rivals such as Facebook Inc (FB.O) nipping at its heels, Alphabet had been trying to pump up advertising revenue from its mobile and video businesses, which have been much less profitable than its desktop business.

In a sign the company was becoming more sensitive to shareholders, Alphabet also announced on Thursday a $5.1 billion share buyback, its first ever.

Alphabet's new transparent reporting structure, to come into effect in the current quarter, also shows the company is becoming more shareholder-friendly, analysts said.

"The market has wanted four things from GOOGL – consistent revenue growth, margin stabilization, greater disclosure and cash back. What the market wants, the market gets," said RBC Capital Markets analyst Mark Mahaney.  — Reuters

US Stocks- Futures edge higher with tech shares in focus

NEW YORK - U.S. stock index futures pointed to a higher open on Friday, indicating that a rally that lifted the S&P 500 close to record levels in the previous session could continue following some strong results from technology companies.

Market participants are looking ahead to data on January existing home sales, due at 10:00 a.m. EST (1500 GMT), which will give the latest glimpse into how the economy is faring as the U.S. Federal Reserve dials back its stimulus. Sales are seen falling 4.3 percent.

Recent economic data has been mixed, with many metrics - including housing starts on Wednesday - indicating softness, though analysts have largely shrugged that off, pinning the weakness to frigid weather rather than softening fundamentals. Thursday's rally was partially fueled by a bullish read on factory activity, which seemed to support that view.

Tech shares will be in focus a day after both Hewlett Packard Co and Priceline.com Inc reported results that topped expectations. Computer maker HP also raised its 2014 profit view, sending shares up 0.7 percent to $30.40 in premarket trading. Priceline rose 2.6 percent to $1,315.93.

Traders continued to watch the political situation in Ukraine, with EU mediators expecting an agreement between Ukraine's pro-European opposition and Russian-backed President Viktor Yanukovich, though the former was seeking last-minute changes to the deal. Geopolitical concerns may increase next week, where there will be few U.S. earnings and data releases to otherwise drive trading.

S&P 500 futures rose 2.8 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures added 22 points and Nasdaq 100 futures rose 6.75 points.

For the week, the Dow is down 0.1 percent, the S&P 500 is up less than 0.1 percent and the Nasdaq is up 0.6 percent. All three indexes are gunning for their third straight weekly gain.

In company news, Groupon Inc slumped 12.5 percent to $8.89 in premarket trading a day after unexpectedly forecasting a quarterly loss, even as it reported revenue that was ahead of expectations.

Pharmacy benefit manager Express Scripts Holding Co late Thursday forecast 2014 earnings in line with Wall Street expectations and said it expects long-term earnings growth of up to 20 percent per year.

Tesla Motors Inc Chief Executive Elon Musk told Bloomberg TV that the company has had "conversations" with Apple Inc, responding to speculation that the iPhone and iPad maker had shown interest in the electric car company. Musk declined to describe the talks, though he said it was "very unlikely" that Tesla would be bought by any company. — Reuters