Google is one of the biggest companies in the world now. With hundreds of billions of dollars worth market value, even a small change to the share value can bring a big change in fortunes, let alone almost $100.
In the aftermath of the company’s announcement to bring more sense into spendings on Monday, the share value rose by 16 percent, or a massive $93, eventually leading the figure $672.93. At $51 billion, experts calculate that it was probably the biggest one-day creation of wealth in history. As of now, the value has further bloated to $699.53.
It also left the Google founders, Larry Page and Sergey Brin, $4 billion richer in just a day, individually. That’s an increase of approximately $96,000 every second. The founders’ wealth is already up 24 percent, or $7 billion, this year to an estimated $35 billion each. Chairman Eric Schmidt likewise increased his wealth by 22 percent to $10.1 billion, thanks to his meager 1.3 percent ownership in the “Dont be evil” company.
The one-day rally also makes Google the second largest company in the world with a market of $404 billion, one step behind staunch rivals Apple which is ahead by someway to $740 billion.
And experts seem to indicate that plenty of potential remains to be unlocked. With much money from advertising remaining to be made, it is firms like Google and Facebook who will benefit the most.
Colin Sebastian, Robert W Baird & Co, said:
People should take away that Google is a stronger and healthier company than what the Street had previously understood. Both Google and Facebook are benefiting from these secular growth trends, which is really moving advertising dollars online from offline. There’s still plenty of growth left for both companies.
Via Time and Bloomberg