Google stock hits record high
Peak explained by market cooling on social Web, say analysts
Google Inc shares crept past their November 2007 record price of $747.24 to hit $748.90 in afternoon trading yesterday, a historic peak for the search giant’s stock, reported Reuters.
Market analysts attribute the bounce from a below-$300 low in 2009, to the cooling sentiment towards social Web outfits such as Facebook Inc, Zynga Inc and Groupon Inc, all of which fell from favour amid concerns of projected revenues.
“The markets have to come to appreciate that Google’s been making money hand over fist all this time,” said Brian Wieser, an analyst at Pivotal Research Group.
Since Larry Page’s return to the CEO seat, some 18 months ago, he has pursued vehement fat-trimming measures that have seen the closing of health and clean energy projects in favour of, among others, social networking.
But Google’s troubles are far from over. The market could still be reserving judgment on the company’s $12.5bn acquisition of Motorola Mobility. And the search titan continues to be probed by regulators around the globe including antitrust investigators in Europe and the US.