Wow.
Google shares cracked through the $500 barrier for the first time today, hitting a high of $505.72 in mid-morning trading. Google's market capitalization is now a staggering $153.5-billion. According to Bloomberg, there are six other companies trading above $500, including Berkshire Hathaway Inc. and Washington Post Co.
So what does $500 mean other than being a really, really big number? For one, it provides Google with the "currency" to make a major acquisition, although the biggest deal made by Google so far is the recent $1.6-billion purchase of YouTube. For some perspective, Google's market cap is larger than eBay ($47-billion), Yahoo ($36.7-billion), IAC/Interactive Corp. ($10-billion) combined. $500 also makes a lot of smart institutional investors, who shunned Google's $85 a share IPO, look pretty silly. (Can anyone believe Google was forced to drop its IPO pricing to $85 to $95 from its original goal of $108 to $135?!) I guess The only downside about $500 is it's an expensive stock to purchase, which could see Google to do 10:1 or 5:1 stock split.
Update: Somebody better watch Jim Cramer; his enthusiasm for Google may cause some heart woes., while the New York Times reports there are only 13 companies worth more than Google.
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Google: Up, Up & Away
by
Mark Evans
on Tue 21 Nov 2006 10:57 AM EST | Permanent Link
Comments
Re: Google: Up, Up & Away
by
/pd
on Tue 21 Nov 2006 11:57 AM EST | Permanent Link
Re: Google: Up, Up & Away
by
Bill
on Tue 21 Nov 2006 02:04 PM EST | Permanent Link
I was thinking of submitting my blog to google to increase the hits but now I wonder if their size will actually have the reverse effect?
Re: Google: Up, Up & Away
by
Randy Charles Morin
on Tue 21 Nov 2006 02:32 PM EST | Permanent Link
The only reason to split would be to increase the liquidity of the stock, which isn't a problem. I think they'll hold off the split until interest in the stock pulls back.
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