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Red-Hot Google Stock Breaks $700-Per-Share Price

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The Associated Press

Published: November 1, 2007

SAN FRANCISCO - Google's stock price barreled through $700 for the first time Wednesday, propelled by a belief that the Internet search leader will become even more profitable as it plants its products and services in new markets.

The Mountain View-based company's shares traded as high as $704.79 before falling back to $700.04 in afternoon trading, up $5.27 for the session. It took less than a month for the stock to leap from $600 to $700, building upon a fervor that has lifted Google's market value by more than 30 percent since mid-September.

During that 6 1/2 -week stretch, Google has created an additional $53 billion in shareholder wealth. That dwarfs the total $41 billion market value of another Internet icon, Yahoo, which had a four-year head start on Google.

The latest surge came after Google confirmed plans to become a bigger player in the Internet's social networking scene, which could morph into an advertising hotbed. Investors also seem enthused about reports that the company is about to unveil an operating system designed for mobile phones so it can make more money by distributing ads to people on the go.

The recent rally has made Google Silicon Valley's most valuable publicly held company, supplanting Internet networking supplier Cisco Systems.

With a market value of nearly $220 billion, Google also is now worth more than Warren Buffett's holding company, Berkshire Hathaway, whose steadfast refusal to split its stock during the past four decades has left its Class A shares at nearly $130,000.
Google co-founders Larry Page and Sergey Brin, who regard Buffett as an inspiration, so far have resisted requests to split their company's stock.

A $10,000 investment in Google's stock at its August 2004 initial public offering price of $85 would now be worth about $82,000.

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