Google stock has hit $1,000 per share for the first time in company history.
The search giant topped the $1,000 mark on Friday, making it one of the few businesses to reach that impressive milestone. Google joins Berkshire Hathaway, Priceline, and several other companies that have passed the 1K marker.
Google, Inc. executives watched as the company’s shares hovered around $900 over the last several months. That share price jumped by almost 10% overnight following a positive Q3 earnings report. The company’s shares jumped by nearly 10% overnight.
Based on those numbers Google added nearly $25 billion to its market cap in just a few short hours.
Google earned its increased fortune by beating Wall Street estimates for both earnings and revenue.
Since the start of 2013 Google stock has increased by $250. Investors have been impressed with Google’s vision for the future. That vision includes self-driving cars, Google Glass, and Google Fiber, among other platform and hardware based programs.
The company has also shown that it is serving enough ads to offset decreases in the cost-per-click model for mobile devices.
Reaching the $1,000 marker is a symbolic move more than anything. Google is moving towards a stock split that will create a new class of non-voting shares, allowing the company’s founders to remain full control over Google’s direction well into the future.
A stock split will send Google stock well below $1,000 per share, while at the same time providing more a higher rate of return for investors.
It was in February 2013 that Google stock reached above the $800 milestone for the first time.
Do you think Google’s $1,000 per share valuation is too high or right on track based on the company’s current earnings and potential for future sales?