Google, Facebook stocks jump, Twitter prepares to join market
Marcio Jose Sanchez, Associated Press
Three big tech-related companies — Google, Facebook and Twitter — have shown success this week in relation to Wall Street.
On Thursday, Google’s stock jumped to $1,012, a more than 14 percent ($120) increase, according to USA Today. This climbed over the previous record of $924.69 set on July 15.
Google “showed again late Thursday just how lucrative its business of collecting and selling consumers' personal data to the highest bidder has become. Those surging profits are powering Google's stock to levels not seen by many companies,” said USA Today.
USA Today also reported Google announced a $3 billion profit in the third quarter, which is 36 percent higher than in 2012 and above estimates.
“It was the first time in several quarters that Google, which for years exceeded analysts’ expectations, had once again beat what Wall Street thought it could earn,” reported The New York Times.
Google is now a member of Wall Street's $1,000 club. Google joins Warren Buffett’s Berkshire Hathaway ($175,950), pork processor Seaboard ($2,814) and retailer Priceline ($1,048) as the only companies with a stock price above $1,000, according to USA Today.
The $1,000 club is "a numbers game," according to USA Today, and "Google's market value already surpasses the $288 billion value of Berkshire Hathaway and swamps the $3.4 billion value of Seaboard," USA Today reported.
The New York Times reported Google expects its ads on mobile devices will keep growing, as they are a crucial point of emphasis by the company.
Google isn’t the only company celebrating its rise in stock. Facebook, following a tough introduction into the market, reached its record high on Thursday, jumping up $1.08 to $52 a share, according to Investor Place.
Facebook’s jump will be “a good PR boost” after the company received more criticism for a shift in privacy laws that will “in effect, weaken privacy,” Investor Place reported.
Both Facebook and Google will soon be joined by Twitter on Wall Street. On Tuesday, Twitter announced it was choosing the New York Stock Exchange instead of the Nasdaq Stock Market, according to The Los Angeles Times.
"This cements the idea that Twitter believes at least two things: One, that this is a hot IPO and two, that the window is open for them," Max Wolff, chief economist and strategist at ZT Wealth, told the Los Angeles Times. "In New York, we call that chutzpah."
Twitter also announced its most recent revenue numbers — $169 million — on Tuesday, according to The New York Times. Twitter said its “monthly users grew to 232 million in the third quarter,” with about 76 percent using the social media service on a mobile device.
NYSE is planning to offer testing next weekend ahead of Twitter’s IPO launch, “highlighting an industry-wide focus on risk controls after a spate of technology-related snafus in recent years,” Reuters reported.
Even though Twitter loses money due to “high employee stock and compensation costs and spending heavily on research and development,” the outlook remains positive, according to the New York Times.
“Things are looking positive for Twitter,” said Debra Aho Williamson, an analyst with research firm eMarketer, who closely tracks Twitter, to the New York Times. “This sets Twitter up to really have a great year.”
- 4 financial follies of the millennial generation
- Vail Resorts buys Park City Mountain Resort...
- Retail sales are up since last month
- 11 jobs that need women ... and men
- Grand America to pay $2M fine for hiring...
- Chinese city creates cellphone sidewalk lane
- Mega-resort could give boost to Park City,...
- How employers can improve the nation's health
- Vail Resorts buys Park City Mountain... 16
- 11 jobs that need women ... and men 15
- How net neutrality impacts online news... 6
- Mega-resort could give boost to Park... 5
- Parents are short changing their girls... 2
- Which new iPhone is right for your... 2
- How employers can improve the nation's... 2
- Prosecutor: Plant owner OK'd tainted... 1