Google continues to climb: each share is now at $ 500
According to an article published on November 22, 2006 in The Guardian, Google's stock price reached $ 500 yesterday on Wall Street in a spectacular continued rise that has led it to become one of the most valuable companies in the United States. .
Google shares were worth a mere $ 85 when the company went public on the NASDAQ in August 2004. They quickly became the highest-performing stocks on the market: three months later, they hit $ 200 and in November 2005 they hit $ 200. 400 dollars.
In early trading yesterday, Google's stock price rose $ 9.21 to $ 504.26, giving the company a market value of $ 154 billion (more than the capitalization of Chevron, IBM or Intel).
This milestone was reached just 8 years after two Stanford University graduates, Larry Page and Sergey Brin, founded Google in a Silicon Valley garage. They are both 33 years old and the shares of each of them are worth more than 15,000 million dollars, even after selling a significant part.
Based in Mountain View, near San Francisco, the company employs 6,000 people and has gradually expanded its offering from just online searches to news, maps and music. This month he bought the YouTube video website for $ 1.65 billion.
Google has been at the forefront of a renewed enthusiasm for high-tech stocks reminiscent of the boom and bust of .coms in the late 1990s.
According to financial reporting firm Bloomberg, some 33 analysts who track Google still recommend buying shares in the company. Four consider the stock as "served" and only one is advising his clients to sell.
However, some began to ask for caution yesterday. Scott Kessler of Standard & Poor’s in New York stated: “Much of the compensation is already valued in stocks. Now people should start thinking about the risks. "
At $ 500 a share, analysts say the company is worth 37 times what its earnings will likely be next year.
Source: The Guardian