Google shares break $400 mark – the Internet tsunami continues
The Google stock rose to $403.45 in New York trading. An account by Jonathan Thaw of Bloomberg News yesterday puts this into perspective.
Google went public in August 2004 at a share price of $85. This explosive growth in the Google share price is fuelled by soaring growth in online advertising and investors’ expectations that the company will continue to diversify its products beyond Internet search
This puts a total value on Google of $ 119 billion, which is more than Cisco Systems, the world’s largest maker of computer-networking equipment. This also puts it ahead of Coca-Cola and Wells Fargo. Among technology companies only Microsoft, Intel and IBM are bigger.
This might be seen as a company that is just doing the right things as it expands around its core activities. For example this week it started a public test of a service called Google Base that displays online classified ads. However there is a more significant explanation.
The Internet is a world-shaking phenomenon much like a tsunami. It will dramatically transform the way life is conducted. In a sense as it puts phenomenal pressures on some traditional businesses such as the printed news media, it also creates partial vacuums elsewhere that are there to be exploited by the far-sighted. Google is doing just that. For example, it is working on an online payment system to support its multiplicity of business ventures. It is not too outrageous to think of a Google share value of $800 (after correcting for splits I imagine). The only question is how long that will take.
Tag: Google, share value
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