Shortly after Google’s share price hit $700, back in 2007, the global financial meltdown kicked off, leaving investors doubtful that an advertising-based revenue model could kick out any more profits. It didn’t reach that height again for some time.
But investors have been pretty happy since the search giant’s co-founder Larry Page replaced Eric Schmidt as chief exec back in April 2011: the share price as risen by 36% since he took up the post.
Today, the investors have pushed the share price up to an all time high of $800 – you might argue it’s no coincidence that Apple’s share price has been falling for the last five months since its own peak.
As Android-based phones (mainly manufactured by Samsung) swamp the marketplace, Apple has lost its shine and Google has been raking in the chips. For those not in the know, Android is Google’s operating system for smartphones.
Still, the market capitalisation of Google is $266bn, a very long way shy of Apple’s $432bn. But investors obviously feel there’s life in the old dog yet.