Google Stock Breaks $600 Barrier

[engine]

We asked on Sep. 21, 2007 if Goog Stock [webmasterworld.com] would exceed $600 when it was at $560.55

In the latest reminder of the immense wealth created since Google went public in August 2004, shares in Internet giant surpassed $600 in Nasdaq trading on Monday, joining Warren Buffett’s Berkshire Hathaway among the six stocks that top that mark.

The stock advanced $15.57 to close at $609.62 on the Nasdaq Stock Market, 11 months after it topped $500. The company’s founders, Sergey Brin and Larry Page, who each owned about 9 percent of Google as of March 1, have seen the value of their holdings climb to more than $17 billion each since the company first sold shares to the public in 2004.

Google Stock Breaks $600 Barrier [dealbook.blogs.nytimes.com]

[menial]

Technically it didn't go up that much. The US dollar went down.

[carguy84]

Time to short it!

[amznVibe]

I don't know much about stocks but don't companies
tend to split stocks when it climbs that high?

[potentialgeek]

When's the correction? G's honeymoon is ridiculous.

p/g

[BigAdventure]

Does anyone know what that stock price is as a multiple of next years projected earnings?

[SEOMike]

9% = $17 billion. Sheesh.

[goodroi]

Let's think about this. $600 a share and a market cap of almost $200 billion sounds crazy. But Google is very profitable. They have a commanding market share on internet searches and show no signs of weakening. They just started their biggest quarter which includes the holiday shopping season.

Historically the Google spam team has made significant changes to their algorithm right before the holiday shopping season. Which innocently enough forces people with websites that the new algorithms dislike to significantly increase their adwords spend or miss out on the holiday sales (which for many retailers is not an option).

Recently Google has increased its saber rattling against websites that advertise online with paid text links. If Google were to implement a "quality update" in the next few weeks it should significantly improve the their "stock price quality".

Is their stock price crazy? IMHO yes, but I expect it to get even higher.

[np2003]

ahh well, GOOG's only about 80billion behind Microsoft in market cap, it'll get there when it cost us $200/click.

[MisterT]

Sometimes the strategy is to avoid stock splits.

Berkshire is a perfect example. Check the price for "brk.a"

[amznVibe]

So now near $640 [finance.google.com]. How long until $700? Any bets?

I guess the real question is can it crash as quickly as it climbed?

[edited by: amznVibe at 8:11 am (utc) on Oct. 13, 2007]

[Sharpseo]

Doesn't look overvalued at all to me, I'm not selling my meager Google holdings. Forward P/E is 31, extremely reasonable. They have TONS of room to grow, both domestically and internationally.

PPC spending will keep increasing for the forseeable future. Google's in a very sweet spot: great business model, growing industry, good management, generating tons of cash at an envious profit margin %.

Plus they have the potential to steal market share in the software industry from Microsoft. MSN stealing market share from them in search seems extremely unlikely at this point. Throw in the possibility of getting into the cell-phone market in some regard, plus tons of other side-projects of which a few will probably make it big, and looks good to me.