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Google reassures investors and its stock gains 3.2%

SAN FRANCISCO -- Google Inc. executives offered investment analysts a bright outlook yesterday in a display of confidence that appeared aimed at defusing growth concerns raised by the search engine leader's chief financial officer this week.

Chief executive Eric Schmidt assured analysts he sees ''tremendous headroom" to develop better advertising formulas, in turn generating more of the commissions that account for most profits. Someday, he said, Google might generate $100 billion in annual revenue as it expands into television, radio, and publishing advertising channels. The 7-year-old company's revenue totaled $6.1 billion last year.

On Tuesday, chief financial officer George Reyes said the firm's growth rate would probably slow -- a prospect that alarmed investors and caused Google's stock price to drop. The stock rebounded during yesterday's webcast of management's remarks, gaining $11.65, or 3.2 percent, to $376.45 -- about 4 percent below its value before Reyes's remarks.

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