Google Shares Shoot Past $600
Google shares hit US$600
Google shares cross $600 threshold for first time
October 8, 2007, 4:11 pm
Google Shares Shoot Past $600
By Miguel Helft
Google stock’s upward march continued today as its shares crossed the symbolic $600 mark for the first time. The stock rose $15.57, or 2.6 percent, to close at $609.62, and it is now more than $100 higher than it was three months ago after Google reported second-quarter earnings.
Google hasn’t disclosed any new financial information since then, and the company doesn’t provide guidance to financial analysts. So why is the stock up?
There are plenty of reasons, if you talk to Wall Street analysts, including the overall rise in domestic stocks in the past five weeks. But the reasons differ depending on whom you talk to.
Youssef Squali at Jefferies & Co. says two key factors are driving the stock up. One is the fact that Google is outpacing rivals in the search market by an ever-widening margin. The other is that Google has made changes to its search advertising algorithms which are causing prices for some ads to go up, Mr. Squali said.
Google investors also seem to have overcome fears that the crisis in the mortgage industry, which spends heavily on online ads, would affect the company. But while financial industry advertisers may trim their use of graphical ads aimed at building awareness of their brands, they are less likely to cut search ads, because they only have to pay for those when users click on them, Mr. Squali said. “We thought that performance-based advertising would be the least impacted by the mortgage crisis, because advertisers only pay when they get results,” he said.
Jordan Rohan at RBC Capital Markets says that the weaker dollar is also helping Google. “Half of Google’s revenues come from outside the U.S.; those revenues are higher in U.S. dollars,” he said. And while Google’s revenues and profit are largely driven by search and other text ads, investors are hoping for profits from other initiatives, including the so-called GPhone, the company’s efforts to sell television, radio and newspaper ads and its pending acquisition of DoubleClick.
Gene Munster at Piper Jaffray & Co. said Google disappointed investors by reporting expenses that were higher than expected in the second quarter. “People got spooked last quarter,” Mr. Munster said, adding that Google is likely to have learned a lesson from the $42 drop in its stock that followed. “They are too smart to mess up twice in a row,” he said.
Investors will find out pretty soon. Google is scheduled to report third-quarter earnings on October 18, and analysts expect the company to earn $3.75 a share. But hitting those numbers may not be enough, Mr. Munster said.
“They need to deliver some upside,” he said. “If they don’t, I think there will be a disappointment.”
the job, often done by children, of taking newspapers to people's homes
get something past(someone or something)
get past(someone or something)
colour (APPEARANCE) UK, US color Show phonetics
1 [C or U] red, blue, green, yellow, etc:
What's your favourite colour?
She wears a lot of bright colours.
What colour are your eyes?
Does the shirt come in any other colour?
I like rich jewel colours, such as purple, blue and green.
Are the photos in colour or black and white?
2 [U] the pleasant effect of a bright colour or of a lot of colours together:
I think we need a bit of colour in this room.
Red and yellow peppers give a little colour to the sauce.
LITERARY The whole garden was ablaze with/a riot of colour (= full of different bright colours).
3 [C] a substance, such as a paint or dye, which you add to something to give it a particular colour:
I put my new green shirt in a hot wash and the colour ran (= the colour came out of the material).
4 [U] interesting or exciting qualities or details:
We added your story for a bit of local colour.
Michael was there so that added a bit of colour to the evening's proceedings.
5 [U] a pink colour in someone's face, often showing good health or showing feelings such as embarrassment or excitement:
That walk has put some colour in your cheeks.
I watched the colour drain from her face as she heard the news.
She has a high colour (= The natural colour of her face is red).
colour UK, US color
Colour television, photography or printing shows things in all their colours, not just in black and white.
colour UK, US color
1 [I or T] to become a particular colour, or to make something a particular colour:
Do you think he colours his hair?
He drew a heart and coloured it red.
Fry the onions till they start to colour.
2 [I] to become red in the face because you are embarrassed
3 [T often passive] If something colours your opinion of something, it influences your opinion in a negative way:
I'm sure my views on marriage are coloured by my parents' divorce.
I'm trying not to let my judgement be coloured by that one incident.
coloured UK, US colored
having or producing a colour or colours:
coloureds UK, US coloreds
clothes that are any colour except white
-coloured UK, US -colored
of the colour or colours described:
a multi-coloured scarf
colourful UK, US colorful
1 having bright colours or a lot of different colours:
a colourful painting
2 interesting and exciting:
a colourful character
The town, of course, has a very colourful history/past.
The old city around the cathedral is the most colourful part of town.
Peter Lely (1618-1680)
c.1870, Oil on canvas
Tate Gallery, LondonSketch the biography of Peter Lely.
Margaret Hughes was the mistress of a wealthy aristocrat, who was a patron of the arts. She is holding a jar of ointment, one of the attributes of Mary Magdalen, the friend of Jesus who is said to have had a colourful past.
Describe and comment on the painting.
colourfully UK, US colorfully Show phonetics
colouring UK, US coloring Show phonetics
1 [S] the combined effect of a person's hair, skin and eye colour:
Their colouring is so totally different that you would never think they were sisters.
2 [C or U] a substance that is added to food or drink to change its colour artificially:
It says on the label that no preservatives or artificial colourings have been added.
colourless UK, US colorless Show phonetics
1 having no colour:
Water and glass are colourless.
Carbon monoxide is a colourless, odourless, poisonous gas.
2 not exciting or not interesting:
It is a rather grey, colourless city, with few interesting sights or historical monuments.