Strong Quarterly Results Push the Google Stock Price Beyond $1,000

Google’s online presence has been reaffirmed by the surge in its stock price making it one of the world’s most valuable companies. Its share has become one of the most expensive as it topped $1,000 per share for the first time. At the closing last week, the share was ruling at $1,048.25 and is expected to hold steady in the immediate future. Now a single share of Google is more expensive than three iPad minis put together. Google stock joins an exclusive ultra expensive club. It has been the result of strong numbers released for the last quarter. Compared to the corresponding period last year the quarter’s revenue has risen by 18%.

The Google Stock Price Appreciated 14% After the Announcement

The financial results indicate clearly that internet users are increasingly clicking on the ads Google sells. The results are remarkable particularly if you compare it with Yahoo’s figures who seem to have lost advertising market share to Google and Facebook. Yahoo is in direct competition with Google for online ad revenue and Google has clearly wrested the leadership position which is reflected in the price of its share. After the financial results of Google was made public its stock appreciated by almost 14%. To put the new price line in perspective you may compare it with Apple’s stock which is ruling at a mere $508.89 per share.

Outside Google HQ

Google is Now the 3rd Largest Publicly Traded Company

The Google stock price is expected to rise further. Evan Wilson, an analyst with Pacific Crest Securities believes that Google’s stock should reach $1,135 a share in the immediate future. The dramatic increase in its stock prices has boosted Google’s market capitalization to $337.39 billion. The tech giant now moves up to become the third largest publicly traded company in the world behind Exxon Mobile and Apple. However, Google still faces many challenges as its average ad rate that it charges to the internet users who click on its ads fell by 8% in the last quarter. Its move to enter the smartphone market by acquiring Motorola has not paid off as yet. Google is focusing on reaching more customers through mobile devices and build a larger customer base overseas. These initiatives promise volumes and will help the growth of the company.

Via: washingtonpost