Rejoice, Google Stockholders!

Heads are being held high in the offices of Google, Inc. as of late. Google’s stock rose 2.6% on February 1, closing at a record $775.60. This surpassed Google’s previous all-time high of $774.38, which it reached in October 2012. The company is also expected to be nearing the end of a three-year antitrust investigation led by the European Union. Google sent a list of proposals to its investigators, which is currently under review. If these proposals are similar to the compromises the company made voluntarily in the U.S., it is unlikely that they will be noticeably detrimental to its business.

Google’s stock shows no signs of slowing down either. On top of its long-running dominance as the number one search engine, the company has made successful strides into the broadband, cable, and wireless fields and currently activates one million Androids every day. Although former Google employee/current Yahoo CEO Marissa Mayer’s changes to her company have earned her praise, it still seems improbable that Yahoo could pose a serious threat to Google’s control over the online advertising market anytime soon.

The main concern that analysts have expressed toward Google are with regard to its mobile business. Despite a 24% increase in the number of paid clicks through Google, the company’s mobile department has suffered due to a 6% drop in the average cost per click paid by advertisers. Advertisers aren’t willing to pay high fees for clicks over mobile devices, since mobile users have shown lower rates of being converted into purchasers than desktop users. Motorola’s mobile business suffered a $353 million loss in the fourth quarter of 2012 and Google’s chief financial officer Patrick Pichette has said that financial results are expected to be unstable “for quite a while.” These losses appear to be a rather minor hiccup in the scope of Google’s total operations, however. In the midst of a 35% decline in Apple’s shares, Google stockholders have good reason to celebrate.


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