California-based Google has seen its shares soaring to a psychologically new all-time high amid increased corporate confidence. Investors trust in the firm’s ability to defend its Internet search dominance.
Google’s stock price surpassed $800 (599 euros) per share for the first time on Tuesday, reflecting the company’s confidence in its ability to further increase profits through its Internet search business.
The Californian firm took the new milestone some five years after its shares crashed through the $700 barrier only to see the stock tumbling down as the global economic crisis set in and with it the worst recession since World War II.
As analysts applauded Tuesday’s early trading stock rally, Google’s share price wouldn’t be even near current levels had the company had its way. It had hoped to split its stock last year, which would have temporarily halved the trading price by doubling the number of outstanding shares.
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However, the proposed split was put on hold for Google to first resolve a shareholder lawsuit over fears the split could unfairly cede too much power to CEO Larry Page and fellow co-founder Sergey Brin. A trial is scheduled to begin in a Delaware state court on June 17.
For the time being, Google’s search engine remains a dominant marketing hub, with its YouTube video site also having established itself as a powerful advertizing instrument. Adding to Google’s strength has been its Android operating system, which runs on more than 600 million smartphones.
Media reports said Google was now also considering opening stores of its own across the US, thus following the example of Apple and Microsoft. The “Wall Street Journal” newspaper said on Tuesday it was unclear yet where exactly Google stores would be inaugurated and whether any stores would open still within this year