Google Stocks

Google, an American multinational corporation is famous for its search engine all around the world. It is also behind the world’s most used smartphone software Android. Google earns majority of its revenues from Ad words.

Google News recently came in when they announced a stock split. Due to the split, S&P 500 technically now has 501 components. Google now has two classes of shares which have different ticker and stock prices. GOOG shareholders don’t have any voting rights unlike GOOGL.

Recently, Google was criticized by some critics that four of its major shareholders including Larry Page and Surgey only have around 20% stake in the company. But they have around 63% of the voting rights. Now the company can issue as many shares as they want under the ticker GOOG but that will not dilute the founders of Google.

Google stock price today as of 11^th April, 2014 is trading at $546.69 down 3.59% from last night closing price of $567.04. Since the start of 2014, Google shares are down 2.53% and analysts expect it to increase around 23.5% in the coming 12 months.

Before the stock split of Google occurred, its share price was $1135, but after the split the price reached to $571.5. Since Google is expanding into cloud services, analysts expect it to further increase the company’s revenues. In the last five quarters, Google Revenues have increased consistently. One negative aspect in these five quarters in that their operating expenses have increased in every period.

Google stock graph shows that GOOGL share price had upward trend initially but recently it has fallen slightly. The Earnings per share of Google recently announced was $18.02. Apple, whose share price is $523.48 and is trading at a discount to Google, has Earnings per share of $40.32 which is considerably higher than Google. Realizing the market cap of Google which is $42 billion higher than of Apple, Google should do something to decrease its operating costs, so that its Net income increases and so do Earnings.

The different classes of shares issued by Google in the S&P 500 have made many people confused since both are present on the index with different tickers and prices.

With Google as the market leader of search engine and Android, it certainly has a bright future ahead. Products like cloud services and Google Glass that reflect Google’s ability to adapt new technologies of the future and set a trend for the rest of the industry to follow.