New High for Google Stock

Story first appeared on USA Today -

Google's stock climbed to a new high Friday as Wall Street's best known indexes approached record territory, too.

The shares of the Internet search giant peaked at $776.70 during the afternoon to eclipse the stock's previous record of $774.38 reached in early October. It closed Friday at $775.60, up $19.91, or 2.6% for the session. The company, based in Mountain View, Calif., went public at $85 a share in August 2004.

Meanwhile, the benchmark Dow Jones industrial average closed above 14,000 Friday for first time since October 2007 — near the bellwether's all-time high of 14,164. The broader Standard & Poor's 500 index, which includes Google, was up 1% and also flirting with a record high.

The stock market's rising tide isn't lifting all companies. For instance, the stock of Google rival Apple is 36% below the peak price it reached in September. Apple's shares shed another $1.87 Friday to close at $453.62.

Google's stock has been on the upswing since the company reported fourth-quarter earnings 10 days ago. Google is still enjoying strong growth in Internet advertising as it extends its reach to smartphones and tablet computers.

Google Co-Founders To Sell Off Combined 5.5Billion in Stock

AP

Google Inc. co-founders Larry Page and Sergey Brin are relinquishing some of their control over the Internet search leader with the sale of 10 million shares worth $5.5 billion at current prices.

Under a plan disclosed Friday, the longtime business partners will each sell 5 million Google shares during a five-year period that will commence with the first trade.

The sales will occur periodically to lessen the chances of hurting Google's stock price.

Page and Brin, both 36, will remain Google's most influential shareholders, although they will be losing some of their clout.

The two iconoclasts own a special class of Google stock that gives them combined voting power of about 59 percent - enough to override the wishes of all other shareholders if they wanted. The duo secured this veto power to ensure Google remained true to their values, which are summed up in the company motto, "Don't Be Evil."

After the sales, the founders' holdings will be whittled to a combined 47.7 million shares with 48 percent voting power.

Falling below the 50 percent threshold might not matter because they run Google as a ruling triumvirate with the company's chief executive, Eric Schmidt, whose shares hold 10 percent voting power.

Although the trio acknowledge occasional disagreements, they insist they always work things out amicably. What's more, Schmidt, Page and Brin have agreed to remain at Google at least through 2024.

Executives and founders of companies commonly enter into predetermined stock trading plans to raise cash and diversify their investments.

Page and Brin each currently have about $16 billion of their fortunes tied up in Google stock. By their own choice, their annual salary at Google is just $1.

"They are both as committed as ever to Google and are integrally involved in our day-to-day management and product strategy," Google spokeswoman Jane Penner said. "The majority of their net worth remains with Google."

This marks the second time Page and Brin have sold big chunks of stock since Google went public in August 2004.

Three months after the company's initial public offering, Page and Brin filed an 18-month plan that divested 7.2 million shares apiece.

Back then, Google shares were trading around $169.40. The stock is worth three times as much now, closing at $550.01 Friday after falling $32.97, or 5.7 percent.

Wall Street Shows Lust for Google and Caution For Yahoo.

Search Engines Continue To Lead Technology Stock Plays.



Internet earnings season shifted into high gear this month with the major search engines drawing the largest spotlights. Yahoo the once proud grandfather of keyword search is being viewed with caution and the ever elite Google guys are drawing sheer lust with daily run-ups topping $600 per share. Some investment analysts (still unsure of the keyword search space) are happy plodding slowing along as they increase their stakes with Yahoo and continue to look for optimistic signs of its ability to catch up with Google’s keyword advertising strength.

Deutsche Bank analysts predict Yahoo results to be in-line with expectations or just slightly below as they place a humble and down $24 target on Yahoo shares which is nearly 15% lower than Yahoo's recent share price trends of $27+. Other high rolling investment firms clad in french cuff shirts and designer cufflinks expect Yahoo’s earnings to drive and support a confident $30 target, suggesting that Yahoo stock will rise nearly 8% during the next year.

Yahoo shares are up 9% so far in 2007, and the company has been through some significant changes with the departure of former CEO Terry Semel, who was replaced in June by co-founder Jerry Yang. The Yahoo Panama advertising platform was launched to help the former king of search better compete with arch rival and long-time Yang friends Google for the coveted search-advertising dollars. Recent speculation and hints by Jerry Yang that Yahoo will be sold off in chunks with AT&T gobbling up many profitable parcels have also helped Yahoo prop their share prices up. Some market analysts including a leading broker from a flint hospital also view Yahoo as more successful than Google in getting advertisers to spend more money on search ads quarter-over-quarter. Those hidden Yahoo Pay Per Click account re-charges might drive short-term results however they also spike advertisers frustration levels and push quality PPC accounts away from Yahoo toward Google and MSN.

Speaking of Google the lust for GOOG is running huge on the street, Goldman Sachs analysts deemed Google as their top pick in the Internet industry and view Google and keyword search as the primary driver of the Internet stock sector that is up nearly 50% year-to-date. “We continue to view the Internet sector as our favorite sector across communications, media and entertainment given the benefits of strong secular growth trends and significant international exposure, both of which offset a U.S. slowdown, especially in newspaper, radio, and television advertising.”

One analyst added “The performance-based nature of keyword search advertising and its ability for direct response lead to higher portions of advertising budgets being allocated to the major search engines, especially Google AdWords. We do have a concern with one aspect of Pay Per Click Search Advertising: Click Fraud.”

In researching the numbers "we find few companies as well positioned as Google.” Google Investors are looking for new updates on Google's continuing transformation of YouTube and quality of overlay advertising within the online video space.