Google mobilise in the face of success

Posted Monday 22nd October 2007 by admin in SEM News.

Share Prices

On the 8th of October 2007 the Google share price crossed the $600 dollar mark. It represented a landmark to traders and exceeded the expectations of market analysts. The company share prices have gained 41% this year. Pacific Crest Securities manager Steve Weinstein has predicted that this rate of growth will continue into 2008 with his predictions suggesting shares will reach $850 by this time next year. The growth represents the levels of confidence investors have in the world’s most popular search engine.

Profit, Sales and Employment

Critics have suggested the market growth is the sign of a dot-com bubble but the performance of the company suggests otherwise. Google have released figures that demonstrate a profit increase of 46% in the third quarter up to $1.07 billion. The company have also experienced a 57% increase in sales to $4.23 billion. Google have seen more than a 50% growth in revenue in every one of the past 13 quarters since going public in August 2004. The size of the Google workforce is also experiencing growth. It is said Google have been recruiting 160 new employees a week and they now employ 15,916 people.

Performance

Google continue to dominate the search business. They remain well ahead of their nearest rival Yahoo! with more than 60% of global search engine queries. Google web searches have risen 40% year on year with internet users continuing to favour Google over their rivals.

The future

Google are looking for ways to maintain the level of growth. They are set to sell ads in video clips on YouTube and will be looking to diversify by releasing a mobile phone. The phones will come with Wi-Fi capability and a touch screen display enabling users to be connected to the internet. It will offer the consumer a cheaper alternative to the Apple iPhone. Lehman analyst Mr Doulas Anmuth suggests it will be priced beneath the $100 mark and could “potentially even be free”. Google applications such as maps and Gmail will be in the hands of the customer in February 2008. Analysts predict that it is likely to facilitate even greater growth in the online advertising industry – another promising sign for High Position.

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