Google Inc(NASDAQ:GOOG) shares hit an all-time high on Monday with the help of the search engine giant’s trustworthy advertising business back in vogue among investors of Wall Street.
The stock hit $749.99 in afternoon trading, moving past an older record set in November, 2007 of $747.24. It had traded below $300 in 2009 during the global economic catastrophe. It remained under pressure in the ensuing years as investors worried that Google is done with its good times.
The No. 1 search engine in the world generated $38 billion of revenue the previous year. It now seems to be increasingly attractive when compared to a new group of social web companies, as reported by analysts.
Facebook Inc(NASDAQ:FB), Zynga Inc(NASDAQ:ZNGA)and Groupon Inc(NASDAQ:GRPN) came to the public markets amongst the sky-high expectations during the previous year. However, things have not really turned out in their favor and now there are concerns over their future business prospects.
An analyst at Pivotal Research Group, Brian Wieser said that the markets have come to appreciate Google’s efforts in making money.
Google’s lucrative search advertising business and its efforts of escalating into mobile and display advertising have helped the firm in maintaining robust revenue growth.
In contract with Google, Facebook stands at a more uncertain situation.
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The stock was up almost by 2% at $748.20 in afternoon trading. It has increased roughly by 27% since the month of July, when compared with Dow Jones Industrial Average’s approximate 6% growth and 9.5% surge on Nasdaq.
Google’s increasing stock price happened after almost a year and a half after Larry Page resumed the role of the chief executive in place of Eric Schmidt.
Page has moved aggressively to pare the sprawling portfolio of products offered by the company and has eliminated projects that involved green energy and health. He stepped up social networking efforts of Google.
On the other hand, shares of social networking companies, which are working hard on monetize its inline presence, slumped on Monday.
Shares of Facebook Inc(NASDAQ:FB) tumbled 8% after after a bearish article by Barron's hit the market this weekend , which stated that the stock may not worth more than $15 at current scenario. The article further added that the stock trades at high multiples of both sales and earnings, even as uncertainty about the outlook for its business grows.
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Shares of ZNGA fell over 7% to below $3 marl and GRPN slid 3% to $5.13.