Google’s Stock Turns Nine

It was nine years today ago that Google ($GOOG) had its IPO. The underwriting price was $85 per share, and the stock opened and closed trading at $100. The New York Times opined: “At its closing price of just above $100 yesterday, Google is valued at a bubbly $27 billion.”

Bubbly? It turns out that that was only the beginning. GOOG, which has never split, raced to $747 by November 2007.

Then came the recession and GOOG lost two-thirds of its value in a year. By November 2008, the stock dipped below $250. It then rallied to $600 before the end of 2009. After that, Google was pretty flat until about a year ago. The shares took out their 2007 high in September, and last month Google touched its all-time high of $928.

Consider that Google’s underwriting price was $85, and Wall Street expects the company to earn $51.34 per share next year.

Posted by Eddy Elfenbein on August 19th, 2013 at 11:07 am

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