Investors gaga about Google

first_imgSAN FRANCISCO – Google Inc.’s stock price surpassed $500 Tuesday for the first time, marking another milestone in a rapid rise that has catapulted the Internet search leader into the corporate elite. Continuing a recent surge driven by Wall Street’s high expectations for the company, Google’s shares rose $14.60, or nearly 3 percent, to close at $509.65 on the Nasdaq Stock Market. That left Google with a market value of about $156 billion just eight years after former Stanford University graduate students Larry Page and Sergey Brin started the business in a Silicon Valley garage. The Mountain View-based company now ranks as Silicon Valley’s second-most-valuable business, eclipsing the likes of Intel Corp., the world’s largest computer chip maker, and Hewlett-Packard Co., a high-tech pioneer that, 67 years ago, also famously started in a garage. The only Silicon Valley firm worth more than Google is networking-equipment maker Cisco Systems Inc., with a market value of about $163 billion. AD Quality Auto 360p 720p 1080p Top articles1/5READ MORESurfer attacked by shark near Channel Islands calls rescue a ‘Christmas miracle’Google’s remarkable success has made Page and Brin, both 33, and their handpicked chief executive, Eric Schmidt, multibillionaires. Hundreds of other Google employees are millionaires because so many investors want to own a piece of a company that has become the Internet’s most powerful financial force while building a brand so ingrained in society that it has become part of the English language. It took slightly more than a year for Google’s shares to travel from $400 to $500 – the stock’s longest journey from one major milestone to the next since the company priced its initial public offering at $85 in August 2004. The shares topped $100 on their first day of trading on the Nasdaq Stock Market, then crossed $200 in less than three months. The stock broke through $300 seven months later in June 2005 and then breached $400 on Nov. 17 last year. The latest spurt of optimism appeared to reflect a belief that Google will quickly introduce ways to mine more online-advertising revenue from its just-completed $1.65 billion acquisition of YouTube Inc. Google used its stock to finance the deal. 160Want local news?Sign up for the Localist and stay informed Something went wrong. Please try again.subscribeCongratulations! You’re all set!last_img read more