The price of Google shares has reached $500 on Wall Street as the internet search giant continues its phenomenal growth.
The shares were priced at $85 when the company went public on Nasday in August 2004 but very quickly rose to $200 and were valued at $400 last November.
The search engine is now valued at over £81bn, making it larger than the likes of IBM and Intel. Whilst some may argue that the enthusiasm for the hi-tech stocks is reminiscent of the dotcom boom and bust of the late 1990s, 33 Bloomberg analysts still recommend buying the stock (4 rate it as ‘hold’ and 1 recommend selling).
At over $500 per share, the company is now valued at 37 times likely earnings for next year.
An interesting article here investigating the likelihood of the shares eventually hitting $1,000.