Google shares hit $1,000 after strong earnings

Google historically left a lot of money on the table (not using every spot on the page for ads, giving away services with real value, etc.) They decided to stop doing that when they decided they were a &#x27;peer&#x27; of Apple&#x27;s.<p>The shareholders love it because it means Google will finally be pulling in as much cash as they &#x27;can&#x27; vs as much as they needed. Users seem to be somewhat divided on the issue.<p>Sophisticated users and people who are long time observers (like Danny Sullivan) have noted that Google is squeezing the value proposition at the expense of people who can ill afford it. (&#x27;Ranking&#x27; on Google is very much a pay to play kind of thing these days with their page layout). As others have mentioned they have gone all in as an exploiter of their demographic data. And &quot;thinking big&quot; as Larry would always exhort people to do, includes thinking about how much money you could get for the sorts of things that only someone who has Google&#x27;s knowledge of the activity stream can get.<p>Now historically this has often been associated with fading influence and success (the old &#x27;killing the goose that lays the egg&#x27; kind of thing). It will be interesting to see if Google is an example of this or they manage to grow into actually being a peer of Apple.

I think this is interesting because it matches my user experience with Google products in a very inverted way. Google search has gotten worse and worse lately, forcing me on to other search engines with worse UIs just so that I can get useful results. Youtube UI gets worse every time they update it. They cancelled the RSS reader. The email UI keeps getting worse and featuring more ads.<p>But the stock value hit $1000. I guess they&#x27;re doing something right, it&#x27;s just not something that affects me in any positive way.<p>[EDIT]:&#x27;affects&#x27;, not &#x27;effects&#x27;

Fun fact: If you had bought a call yesterday for $300, it would now be worth $3100. 1000% return on investment.<p>Yesterday I bought a chipotle call (because of earnings release) for $600 and now its worth $3600<p>Now that the political budget debate is over, I think we will see a spectacularly volatile movement upwards and strong earnings will push stocks to absurd prices way over any reason. The best thing to do is to ride the wave and make some extra cash. It doesn&#x27;t make any sense (price vs earnings), but as long I&#x27;m making money thats okay.<p>Do keep in mind that Google did not jump $130&#x2F;share because its earnings was spectacularly better than ever. It made this huge jump because the market is headed for another bullish run and the market is crazy.<p>I trade stocks on the side for fun, and I blog about my trades here: <a href="http://songzmoney.quora.com/" rel="nofollow">http:&#x2F;&#x2F;songzmoney.quora.com&#x2F;</a>

The value of a company is not measured in its individual stock price, but instead measured in its market cap.<p>The real headline should be: Google hits $330 Billion market cap, making it the 3rd most valuable company in the world.

Chipotle hit $500 for the first time ever: <a href="https://www.google.com/finance?q=NYSE%3ACMG&amp;ei=R15hUrCcG6i2iAL_jgE" rel="nofollow">https:&#x2F;&#x2F;www.google.com&#x2F;finance?q=NYSE%3ACMG&amp;ei=R15hUrCcG6i2i...</a><p>As we head towards a strong earnings season, I feel that we might see many companies hitting their highest ever stock price, especially now that the government shutdown has been resolved (sort of)

I guess the June search-algorithm updates really worked. (Kicking out everyone that earns without giving Google it&#x27;s piece of the pie).<p>Google keeps removing small business websites from its results, forcing them to use Ad-Words. This strategy cannot be sustained unless they want 100% commercial &#x2F; 100% junk results. I wonder what will they do in the future.

Share price is relatively meaningless. It needs to be paired to total shares outstanding.<p>It&#x27;s arbitrary by itself because it&#x27;s a function of shares outstanding and total market value, one of which the company can (relatively easily) control via stock splits.

It seems Google has entered a stage where the data is starting to really pay off. They seem to be using it not only to help consumers but also tweak their own business decisions. That&#x27;s some powerful stuff.

P&#x2F;E remains pretty stable at 30-ish<p><a href="http://www.wolframalpha.com/input/?i=plot+p%2Fe+and+price+NASDAQ%3AGOOG+between+01%2F01%2F2008+and+10%2F19%2F2013" rel="nofollow">http:&#x2F;&#x2F;www.wolframalpha.com&#x2F;input&#x2F;?i=plot+p%2Fe+and+price+NA...</a>

This anecdotally proves that focusing in on your core business can result in stronger earning potential. It&#x27;s not a new concept, but it is somewhat easier to explain to my boss (who needs to learn focus).

Its interesting how $1000 is a psychological number for a lot of people, $1000 number makes the Google stock join some &quot;prestigious&quot; $1000 club according to CNBC. Some people now think its too expensive because of its $1000 and Facebook is in $50s.<p>If Google decided to split the stock early on, it wouldn&#x27;t have seen this day, and all the news that comes with crossing the $1000 mark.<p>So much for all the financial models that assume investors are rational.

A nice 10 ball if you got in on their IPO.

Google doesn&#x27;t pay dividends or give public shares voting rights, while I get it that people believe the intrinsic value will appear at some point, this is not how I would like to invest money in a company, regardless of what price the stock hits.

So I guess the Snowden leaks collapsing US internet dominance didn&#x27;t materialize.

I am always surprised at how much Google can make. I always see ads but I barely ever clicked on ads. I might click on one or two ocassionally. I might click on a few ads before Youtube content is loaded for me. But that&#x27;s it. I can understand a few clicks * two billion users is a lot of clicks.<p>Remember those days when adsense was crazy on everyone&#x27;s page. Somehow, Google&#x27;s ad marketing works so well (and probably pretty expensive by now) that it just works. Plus, since everyone is moving to the Internet, ads are just a norm to do for businesses.

I think this is on the back of product listing ads which are now aggressively pushed, these combined with regular ads crowd out the organic results on ecommerce bases searches.<p>Unlike text based ads which require significant time&#x2F; tech investment to create a campaign across a large number of products, product listing ads just require a merchant to upload a feed.

I found an article from 2007 that predicted this. May be some even earlier.<p><a href="http://www.bloggingstocks.com/2007/06/06/google-hits-all-time-high-but-it-could-hit-1-000/" rel="nofollow">http:&#x2F;&#x2F;www.bloggingstocks.com&#x2F;2007&#x2F;06&#x2F;06&#x2F;google-hits-all-tim...</a>

And no privacy issues, NSA revelations, services shutdown, Google+ coercion, and further exploitation of users have any effect on the bottom line. You can get away with anything when you&#x27;re big and important.

Sure wish I&#x27;d bought some when it first came out at $180.

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Wonder if people actually went out and spent on AdWords when the organic keyword data went to 100% not provided. Has to account for at least some of it.

wow, they went up over $100 today. <a href="https://www.google.com/finance?chdnp=1&amp;chdd=1&amp;chds=1&amp;chdv=1&amp;chvs=Linear&amp;chdeh=0&amp;chfdeh=0&amp;chdet=1382126400000&amp;chddm=1955&amp;chls=IntervalBasedLine&amp;q=NASDAQ:GOOG&amp;ntsp=0&amp;ei=doxhUgGL69EB6XM" rel="nofollow">https:&#x2F;&#x2F;www.google.com&#x2F;finance?chdnp=1&amp;chdd=1&amp;chds=1&amp;chdv=1&amp;...</a>

Advertising sales is a good indicator as to how well the economy is doing - if times are good then people advertise, if everyone is screaming recession then there is not so much money around to advertise.<p>Hence, if Google does well does that mean the economy as a whole is doing well? Is the Google share price a good indicator, perhaps a better indicator than conventional metrics such as employment level or the FTSE?

Would a reverse stock split or stock merge encourage more people to buy the stock or less, or no effect?