Sunday, November 04, 2007
I'm not talking the convenience store 7-Eleven, but the closing price per share for Google Inc. stock. In May Google hadn't even hit $500 a share, and Friday the stock closed at $711 a share; that's a 40% return in six months! The technology sector has outperformed itself this year, and there are many more stocks that have returned greater than Google Inc., but the figure "700" is what has me flabbergasted. A huge part of that is Google beat its third-quarter earnings per share estimates by almost $0.20. The company continues to grow profits, headcount, and ideas. Monday Google is to announce in more detail plans around its mobile phone operating system, which will give the iPhone some competition. Not to mention Blogger is powered by Google. Some would say this stock price is mostly based on speculation, promise, and potential. This reminds me of how I felt when I purchased a dress over the weekend. It looks very nice from the outside and has the potential to be my winning holiday dress selection, but a tad over-priced.