Google Stock Prices Soar to $500

For the first time in the history of the company, Google's stock price has surpassed $500 (U.S.). The general estimation is that Google now has a market value of $155 billion.

The recent success of Google can be attributed to the favorable expectations that Wall Street has announced for the company, which has translated into a 2.3 per cent stock increase. More accurately, Google's stocks now trade at $509.65/share on the NASDAQ Stock Market.

The share increase has made Google the second most valuable business in the Silicon Valley, surpassing such electronic super-manufacturing companies as Intel and Hewlett-Packard. Only network equipment manager Cisco Systems Inc. is worth more, netting approximately $164 billion. (Source: biz.yahoo.com)

Google has seen a rise in stock prices ever since the company debut in the market. The shares reached $100 on their first day of trading, then surpassed $200 in less than three months. The company shattered $300 only seven months later in July 2005, and finally reached $400 in November 2005. It took slightly more than a year before shares rose again, moving from $400 to $500. (Source: ajc.com)The last jump is especially unique, because it was one of the rare times that a company transitioned from one milestone to the next, without having smaller incremental rises along the way.

The trend is expected to continue with the recent acquisition of the popular YouTube, Inc.

Like other Internet stocks, Google is experiencing a seasonal lift in the anticipation of holiday shopping now being done online. With 45 per cent of the Internet search market coming from the United States alone, Google is expected to direct the holiday traffic and is likely to receive a greater number of referral fees by doing so. (Source: biz.yahoo.com)

Google has made most of their money selling written ads posted alongside search results and other online content. However, the company hopes to expand operations into areas of video and mobile computer devices.

The company has also expressed interest in producing a program that would place their ads in more than fifty prominent American newspapers and hopes to infiltrate radio ads by year end. (Source: ajc.com)Analysts that have been monitoring Google's stock market success expect the company to reach a $600 share price some time in the next year.