Shares in Internet search giant, Google Inc(NASDAQ:GOOG), crossed $700 on Friday, for the first time since 2007, rising in sync with the general sentiment in the market.
Google has been lagging the rest of the market for the last five years plagued by investigations from regulatory authorities and its struggle to integrate recent acquisition Motorola Mobility.
The stock has been on a downward trend since 2007 and touched an all-time low of $247.30 in November 2008. In that light the recovery in the stock has been spectacular as it has forayed into several areas such as social networking and mobile devices.
The Web search giant is up more than 9% since the first of the year, underperforming the 14% gain seen by the S&P 500 in that time frame. But Google has gained nearly 19% since its last quarterly earnings report on July 19, when the company showed better-than-expected earnings on improvements in its core advertising business.
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The broader market is also recovering from the lows they had touched in 2007 and 2008. The Dow Jones Industrial Average also reached its highest level since 2007 while Standard & Poor's is also returning to the levels it had traded at in late 2007 before the financial crisis gripped the United States and the contagion spread throughout the world.
Google shook off investor concerns about Motorola Mobility turning into a liability for the company by announcing plans to lay off 20 percent of its workforce and holding out hopes that the antitrust investigation in Europe and the U.S. will soon be resolved.
Analysts feel that the stock will reach new peaks now on renewed optimism about its outlook.