Google’s shares hit $600

Source: Technology Digital

Date :10/8/2007 12:03:31 PM

Web search leader Google Inc. saw its shares hit a new benchmark of $600 in early trading on Monday.

Propelled by investor confidence in the strength of its Internet advertising technology, the Mountain View-based company's shares traded as high as $601.45 before slipping back to $597.13 in morning trading.

It marked the sixth time in the past twelve trading sessions that the stock has reached a new peak.

Wealth

The new high is another reminder of the nine-year-old company’s immense wealth.

Google shares have soared from their initial public offering price of $85 when the company went public in August 2004.

They now have a market value of $187 billion.

$700 mark

In recent weeks, some analysts have forecast the company could reach a $700 share price in the next year as it competes more fiercely with rival Yahoo Inc. and gains a foothold in new forms of Web marketing, including online video.

On Friday, Bear Stearns was the latest firm to say Google could hit the $700 mark, calling it one of the best operating companies it covers in the Internet sector.

"Google continues to gain market share in search queries while continuing to face a bevy of competitors," Bear Stearns analyst Robert Peck wrote in a note to clients.

"Further, Google's efforts in online video, radio, and print, have added a layer of value that is absent from its competitors' portfolio of offerings and which has the potential to yield significant financial rewards," Peck said.

Google was up 0.8 percent to $598.55 in morning trading on the Nasdaq.

The shares traded as high as $601.45 during the session.

October 8 2007