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Shares in Google passed the US$600 ($780) mark yesterday, fuelled by investor confidence that the web search leader's advertising technology will capitalise on new areas of the media industry.
Google shares hit US$600 for the first time early in their trading session on Nasdaq, then rose as high as US$610.26, setting a new benchmark for the company whose shares debuted at US$85 in 2004.
From its place as the leading site for conducting internet searches, Google branched into web video by buying YouTube, trod on Microsoft's turf with email and other web-based applications, and has taken aim at Yahoo!'s display advertising business with a planned deal for DoubleClick.
At nearly US$189 billion, the company ranks 11th on the Standard & Poor's 500 Index by market capitalisation. The ranking puts it behind Microsoft and network equipment company Cisco Systems, but ahead of retailer Wal-Mart Stores.
Some analysts see Google reaching US$700 a share in the next year as it competes more fiercely with Yahoo! and gains a foothold in new forms of web marketing, including video.
But Martin Pyykkonen of Global Crown Capital still has a US$600 price target on Google.
"It's not going to be as easy to get to the next 100 points as it was the last," he said.
- Reuters
