The Buzz

All markets and investing news all the time

Google stock hits all-time high

September 24, 2012: 4:23 PM ET

Google's stock hit an all-time high of $750.04 in late trading Monday, before pulling back to a record closing price of $749.38. The new marks topped the previous records set in November 2007.

Shares of Google (GOOG) have rallied 16% this year, as the company continues to dominate in search and makes strides with its Android mobile platform. Just last month, research firm IDC reported that Google's Android had gained a whopping 68% share of the global smartphone market during the second quarter. That's four times the 17% market share held by Apple (AAPL).

Despite the run-up, Google continues to trade at a fairly reasonable value. Shares are trading 18 times 2012 earnings forecasts, and 15 times 2013 earnings estimates. And the stock is lagging the performance of the tech-heavy Nasdaq, which is up more than 20% in 2012.

Wall Street thinks the stock still has more room to run. Citigroup analyst Mark Mahaney reiterated his Buy rating late Sunday, and raised his price target on Google's stock to $850 a share from $740.

Related: Google at 14: Better than ever

"We'd argue that Google is extremely well situated against most of the major trends in Consumer Internet today -- mobile, video, local, and cloud computing," said Mahaney. "The one big miss is social, but even there Google has a play with Google+."

Google is also benefiting as investors realize that Facebook (FB) poses less of a threat to the company than originally thought.

While Facbeook CEO Mark Zuckerberg discussed the possibility of his company developing a search service at the TechCrunch Disrupt conference earlier this month, Mahaney said it would be "quite different" from what Google offers. Rather than a mirror of Google, it will likely be a Facebook-specific search feature that allows Facebook users to more easily to ask their friends questions.

Related: Facebook vs. Google: It's on! (Again)

"Frankly, we believe that the possibility of someone generating a truly competitive search offering to Google has gotten remoter with each passing year," said Mahaney. "Different competitive feature innovations have come along that Google has adopted...But Google's core value proposition -- especially for commercially oriented queries -- appears extremely well intact.

Google shares are on the verge of a stock split, which will create a third class of Google stock, and give even more control over the company to CEO Larry Page, his fellow co-founder Sergey Brin and chairman Eric Schmidt.

Google's new milestone, which brings the companies market cap to $247 billion, comes just three days before the company officially celebrates its 14th birthday.

Meanwhile, shares of fellow tech giant Apple hit a record high of $707.50 on Friday. Shares slipped Monday after the company said it sold 5 million iPhone 5 devices over the weekend, fewer than the 6 million that Wall Street analysts were projecting.

Join the Conversation
Fear & Greed
Sponsored by
About This Author
Hibah Yousuf
Hibah Yousuf
Reporter, CNNMoney

Hibah Yousuf is a reporter at CNNMoney, where she covers stocks, bonds, commodities and currencies trading across the globe, as well as corporate earnings and other markets-related news. Prior to joining the site in 2009, she interned at Money Magazine.

Stupid Stock Move of the Day
#StupidStock Move of the Day! $MAT up 7%? Hello Barbie has to be really huge to make investors forget about rest of the business.
Powered by VIP.

Get every new post delivered to your Inbox.

Join 252 other followers