Google’s Stock Price Hits the $700 Mark
Google Inc.’s stock price has hit a record high by hitting the $700 mark for the first time today.
But is already being said that the Internet search leader will become even more profitable when it introduces the Google phone.
The shares traded as high as $704.79 before falling back to $700.04 in this afternoon trading, up $5.27 for the session.
It took less than a month for the stock to leap from $600 to $700, building upon a fervor that has lifted Google’s market value by more than 30 percent since mid-September.
During that 6 1/2-week stretch, Google has created an additional $53 billion in shareholder wealth.
That dwarfs the total $41 billion market value of another Internet icon, Yahoo Inc., which had a 4-year head start on Google.
The latest rise came after Google confirmed its plans to become a bigger player in the Internet’s social networking scene, which could morph into an advertising hotbed.
Investors also seem to be excited about the fact that the company is about to unveil a long-rumored operating system designed for mobile phones so it can make more money by distributing ads to people on the go.
Wall Street believes that Google is still a baby financially speaking, even though it’s already on track for a profit of about $5 billion this year on more than $15 billion in revenue.*Sponsored Links*
Analysts are now trying to figure out just high Google’s stock might rise in 2008. The average 12-month price target for the shares now stands at $739.23 among analysts polled by Thomson Financial, but that figure seems likely to rise in the next few days.
Google has made virtually all of its money so far by displaying text-based advertising links alongside search results and other Web content that includes topics related to the commercial message.
During the past year, Google has introduced new online advertising channels featuring video, graphics and other more compelling features while also extending its marketing machine into television, radio and print.
Now, Google appears intent on shaking up the telecommunications industry by introducing inexpensive cell phones that will make it easier for people to use Google’s search engine, maps, e-mail and other applications even when they don’t have access to a personal computer.
According to author Stephen Arnold, who has just released a 266-page study analyzing the company’s patents and what they may portend for the future:
“I use the term ‘Googzilla’ to describe the current incarnation of Google,” Arnold said. “This idea is that Googzilla is big, powerful, and indifferent to the insects and ants crushed by its massive paws.”
Googzilla will one day rule the world.*Sponsored Links*