Google’s Steady Surge Takes It Past $727
Apple isn’t the only tech behemoth whose stock is charting ever-increasing gains these days. Google shares are on a similar upward trajectory, and have been since early September, when they crossed the $700 threshold, hitting a price they had not seen since 2007.
A year ago, Google shares were trading at about $480. Today, they closed at $727.50, up more than 9 percent, to reach another 52-week high. And, given the company’s last earnings report — which was better than expected — and the recent introductions of new Android handsets from Samsung and Motorola, they’re likely to move higher still in the weeks ahead.
Scott Kessler at S&P Capital IQ attributes a lot of the recent momentum behind Google’s stock to the company’s second-quarter earnings. “I think there was some investor concern ahead of Google’s last quarterly report,” Kessler told AllThingsD. “But they turned in a solid quarter, and that provided the market with a lot of reassurance. Look at the stock now; it’s up about 25 percent for the past three months.”
Add to that the warm welcome given to the company’s new Nexus 7 tablet, and the company’s recent rise isn’t all that difficult to understand. Said Kessler, “They’ve had some strong product launches. The Nexus 7 is doing well.”
And despite some product missteps and the legal issues burgeoning around Android, Google remains a search advertising juggernaut. With PC search revenue continuing to produce steady cash flow and the company well-positioned to swallow a big chunk of mobile advertising revenue as well, there’s ample reason for the market’s optimism.
As Nikesh Arora, Google’s chief business officer, said during the company’s last earnings call, “The good news is, we’re seeing phenomenal growth in mobile queries across the board. Mobile is, right now, where search was in 1999.”