Google’s Stock Just Broke $1,000
Tue Jun 06 2017
Julie Young (526 articles)

Google’s Stock Just Broke $1,000

On the day the world’s largest company Apple was doused with a downgrade, shares of the world’s second largest company were fanned into much anticipated $ 1,000 territory.

Shares of Google’s parent company Alphabet were trading at $ 1,006 late Monday morning, after hovering just below four digits for over a week. It is the third S&P 500 stock to breach $ 1,000, after shares of Amazon soared above $ 1,000 last week.

Alphabet’s rise comes as an analyst at Pacific Crest downgraded shares of Apple in a note Monday, calling for investors to look toward the Google parent instead. That helped push the market capitalization of Alphabet to $ 688 billion. But it still pales in comparison however to Apple, which is worth $ 803 billion after shares fell nearly a percentage point in trading on Monday morning.

While share prices alone can be a relatively arbitrary metric of value (for example, the other company on the S&P 500 to breach $ 1,000 per share was Priceline, with a market capitalization of $ 93 billion), Alphabet’s rise to $ 1,000 is notable in that demand for the stock is still there, despite its four-digit price. In theory, higher prices on an individual stock could make a company look unaffordable to smaller investors.

But even with a price tag of more than $ 1,000, analyst consensus still says the Alphabet’s stock will rise about 6% over the next 12 months, according to Bloomberg data. Already, shares have risen 39% over the past year.

It’s not the first time Google has been priced at $ 1,000 a share. Prior to its stock split in 2014, shares of the tech giant rose to $ 1,200. But it’s the first time it broke the mark since it became Alphabet.

Julie Young

Julie Young

Julie Young is a Senior Market Reporter and Analyst. She has been covering stock markets for many years.


Rules of Discussion on Live Index

1. This forum is for discussion of financial markets. Please respect others view even if they are contrary to you.
2. Member's comments should lead to value addition in forum discussion.
3. If anyone is found making repetitive Explicit/Abusive/Racial comments, his account shall be banned and old posts will be deleted.