SAN FRANCISCO – Google Inc. reached $1,000 for the first time amid optimism about new advertising for wireless devices and online video, joining a small club of U.S. stocks.
The worlds largest search-engine company gained 14 percent to a record $1,011.41 at the close Friday in New York.
The stock, sold at $85 in a 2004 initial public offering, has risen every year since except for 2010 and 2008, when it slumped 56 percent during the recession.
The Internet company is benefiting from ads for new formats after expanding beyond delivering advertisements alongside search results on desktop computers. Google is expected to take 33 percent of the global online-advertising market this year, up from 31 percent in 2012, according to EMarketer Inc.
Its not complicated, said Martin Pyykkonen, an analyst at Wedge Partners Corp. in Greenwood Village, Colo. This is a story that is a proven business model. The bottom line is this is a great growth stock.
Google, based in Mountain View, Calif., already has one of the highest market capitalizations in the United States at about $330 billion, trailing only Apple and Exxon Mobil. Among the few companies with a stock price above $1,000 are online travel company Priceline.com Inc. and Seaboard Corp., a producer of turkey and hog with a market value of just $3 billion.
A majority of analysts are predicting further stock gains for Google, with 35 recommending to buy the shares and 13 advising to hold them, data compiled by Bloomberg shows. None has a sell rating. Google is trading at a price-to-earnings ratio of 28, the data show, lower than Facebook Inc.s 237 and Yahoo Inc.s 29.
The stock jumped Friday after Google reported third-quarter sales and profit that beat estimates Thursday. Revenue was $11.2 billion, exceeding the average projection for $11.64 billion.