Google Inc (NASDAQ:GOOG) comes out on top again – its share prices soared on Monday, by reaching a figure of $750.04 in Monday’s session. It smashed its own record in November 2007, when the stock was valued at $747.24. During the economic crisis period, the stock had plummeted to $300 in 2009, and investors were getting a bit shaky. Shares of GOOG jumped another 0.25% to $751.26 in pre- market session.
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However, Google has proved once more that it is the champion when it comes to business. Their advertising business is doing extremely well and with a revenue of $38 billion last year, it has surged passed the younger social media companies. Facebook, Groupon, and Zynga have tried their luck by going public, but have not been able to achieve any milestones. In fact, their poor performance has made investors extremely concerned about their future prospects.
Brian Wieser, an analyst at Pivotal Research Group, has said that the market is aware that Google has been steadily making profits all this time. Search advertising was always their forte and now they are also venturing into display and mobile advertising. Facebook’s sources of revenue are not clearly defined as of yet.
Google’s record high comes at a time when co-founder Larry Page is has taken up the reins of the chief executive’s position again, thereby replacing Eric Schmidt, who was manning the operations for the last 10 years. Page has adopted an aggressive approach by canceling projects that involve green energy and health among others and increasing Google’s social networking presence.
Even then, there are numerous obstacles that Google has to face. Antitrust investigations in US and
uncertainty in managing Motorola Mobility, and regulatory scrutiny around the
world, are some of the hurdles that the company has to overcome.