|
|
Lunchtime With Google Stock
By David Utter
Expert Author
Article Date: 2005-09-15
The secondary offering began today, and not long after noon shares of GOOG began ticking up past last night's close.
Shares of Google's class A stock have been nudging $305 a share in midday trading. The follow-on stock sale priced last night at $295, eight dollars below its close on Nasdaq on Wednesday.
The price had dropped to $298.18 in morning trading, but slowly built its way back up over the next couple of hours. At 12:20 New York time the price was $304.94. Google ended 2004, the year it made its initial public offering, with a market capitalization of $84 billion.
Google's revenues for the first six months of 2005 ended at over $2.64 billion, with net income of $712 million for the period. Only $32 million of the company's revenue came from sources other than advertising.
That dependence on advertising makes industry observers wonder what Google has planned for the $4.1 billion in cash it will gain from the new stock offering. Google has been at best non-committal with its intentions; a cursory Internet search (performed at Google of course) about the stock sale will turn up as many third-party theories as the casual surfer cares to read.
About the Author:
David Utter is a staff writer for WebProNews covering technology and business. Email him here.
|
|
