October 09, 2007 | Tuesday
Google worth more than GM and Coca-Cola combined
By Jackie Danicki - Blogger in News |Search Engines |Google
On any other day, revelations of customer complaints filed with the US government against Google would be bigger news. On any other day, news of what Google is planning with their mobile phone developments would be bigger news.
Not Monday, though. Because it’s hard to compete with news that Google shares have surpassed the $600 mark. But will it last, and how much does it matter?
Some firms, including Bear Stearns, are predicting that Google’s shares will reach the $700 mark at some point over the next twelve months. Martin Pyykkonen of Global Crown Capital is shying away from such a prediction - at least until after Google reports its Q3 earnings next week. Pyykkonen says of the share price:
It’s not going to be as easy to get to the next 100 points as it was the last.
This being the cut-throat, often petty world of Silicon Valley, it didn’t take long for Google’s parade to get rained on:
Want some other high-flying tickers? Try the Washington Post Company at $803 or Warren Buffett’s Berkshire Hathaway—currently trading around $121,000 per share. Of course, despite the difference in absolute stock prices, Google and Berkshire Hathaway have roughly the same market capitalization—a perfect illustration of why the price of a stock, out of context, has no meaning.
That said, I suspect those who bought at the IPO price of $85 per share are unworried by such comparisons…
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