Google’s Share Prices Hit Record High Levels

on Sep 26, 2012

On 24 September Google’s shares (NASDAQ:GOOG) reached record highs as investors gained confidence in the company’s ability to adapt to the new world of mobile internet access and social networking. Stocks closed at $749.38 on Monday rising by $15.43 from last week’s price of $733.95. Google’s rally began in June when the stock was priced at $560 and has not lost steam for three months now, the market capitalization of the company rising by 30 percent or $75 billion.

Despite encouraging results, the Financial Times reported that the company’s shares have not kept up with the Nasdaq composite index and other internet firms have performed better on the stock exchanges. Serious gains were registered by Internet giants Amazon, Priceline and eBay.
!m[](/uploads/story/468/thumbs/pic1_inline.png)Google’s shares have taken quite a beating over the past 5 years dropping all the way down to $262.43 on 21 November 2008. This was mainly due to investor concerns over stalling advertising revenues from traditional browsing due to the shift towards mobile internet access.

Facebook’s (NASDAQ:FB) stunning user growth has turned it into the biggest social network in the world and challenged Google and other Internet companies to take seriously the power of social networking and the possible share of the online revenue cake it could take. Contrary to inflated growth expectations however, Facebook has not done so well since its IPO back in May – it lost 40 percent of its stock price in a continued decline propelled by investor doubts over Facebook’s ability to generate revenues from mobile advertising. In fact, the company is currently swamped with issues including privacy and governance concerns, initial investors selling stock and disappointing earnings for the quarter.

A minor setback for Google is the end of its partnership with Apple marked by the release of the iPhone 5 and Apple’s decision to stop including Google Maps in their iOS and substitute it with their own creation – Apple Maps. Despite boasting about the quality of the new mapping service, which is based on TomTom NV’s data and Dutch navigational equipment, many users have complained of startling geographical errors and a lack of features that are otherwise provided by Google Maps.

Google said for now they are not planning to provide the Google Maps as a separate iTunes application for Apple’s iOS 6. Executive chairman Eric Schmidt stated that his company is willing to once again partner and work with Apple but the decision is not his to make. “We think it would have been better if they had kept ours. But what do I know?” Schmidt told a small group of reporters in Tokyo. “What were we going to do, force them not to change their mind? It’s their call.”

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Android, Google’s operating system for smartphones, currently holds the biggest market share and is being used by almost all phone manufacturers except for Apple. “Apple is the exception, and the Android system is the common model, which is why our market share is so much higher,” said Schmidt and added that the media was “obsessed with Apple’s marketing events and Apple’s branding.”

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