Russell Lynch: Google is set to speed up on share price gains

Russell Lynch
Wednesday 20 February 2013 00:32 GMT
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Outlook It's been a long time coming, but internet giant Google's share price finally topped $800 more than five years and one financial crisis after it reached the $700 mark. The shares are still worth a buy.

As ever, the figures associated with the search behemoth are frightening: it took more than 40 per cent of all digital advertising revenues in the United States last year. In mobile advertising its dominance is even bigger, at 53 per cent, and miles ahead of the 8.4 per cent garnered by Facebook.

Larry Page's outfit certainly looks a better proposition than Apple, where the wheels have finally fallen off a share price run which took the stock above $700 last year. Google's dominance in search looks impregnable while its cheaper Android phones and tablets will eat into Apple's market share and margins. Microsoft, meanwhile, was late to the smartphone party and its traditional areas of dominance – home and work PCs – are no longer a growth market in any case.

Google's shares have been on a rollicking run since Mr Page replaced former chief executive Eric Schmidt nearly two years ago, gaining 37 per cent. Mr Schmidt has cashed in on the success, selling 42 per cent of his stake earlier this month and making $2.5bn (£1.6bn), so he probably owes his successor a beer. I fancy it won't take Google another five years to reach $900.

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