New record of Google: More than 500 USD / share

Shares of Google on transactions late November 21, 2006 jumped to $ 509.65, becoming the new record of this company. Google's market capital mobilization has reached 155 billion USD, surpassing Intel to become the second most valuable company after Cisco Systems in Silicon Valey.

Google's stock price from the beginning of the year has increased about 20%. Leading searchers' stocks rose sharply since mid-October when Google released its third-quarter financial report showing a double increase in profit over the same period last year, reaching $ 733.4 million.

Google has been a public company for more than two years, since August 2004. The starting price of a stock of Google is 85 USD but on the first day it soared to 100 USD, after less than 3 months reached 200 USD. After 7 months, that price exceeded 300 USD and November 17, 2005 reached 400 USD. Google shares conquered the 'Hundred Fifth Dollar' threshold over a year and a half later.

From the day Larry Page, from Stanford University and Sergey Brin founded the company "from nothing" in Silicon Valley, only 8 years ago. Now, Google is meeting 61.6% of US Internet search demand, while Yahoo's main competitor is only 22.4% with the same target. Google's main income is from the content of ads displayed on search results. Google management also intends to expand the area of ​​advertising outside the Internet.

Google shares are expensive enough if compared to capital mobilization and profitability. The analysts agreed that next year, Google will earn 13.7 USD / share. Thus, the correlation of capital mobilization with profit will be 37, slightly higher. For comparison, it is possible to get Microsoft, the company with a total value of about $ 300 billion, that correlation is 21.

However, most analysts still believe that the price of the giant searcher's stock is not high. This year, according to the average forecast, Google's profit will exceed $ 2 billion compared to $ 106 million in 2003. Some experts predict Google's stock price will reach $ 550, others forecast $ 600. for 2007.

On November 21, 2006, the stock market also recorded another record: Apple's stock price rose to 88.6 USD - an unprecedented high price of Apple. Apple's capital mobilization reached about 75.68 billion USD. The cause of this sublimation is a good demand (demand) for iPod products as well as a good market response to news that Apple plans to produce its first mobile phone.