As part of my new interest in the stock market, last week, I bought a share in Google at just under the $700 mark. With hindsight, the stock would have been an excellent purchase back when it first went public in 2004 at sub-$100 or even just a few months ago like another blogger whose 5 shares bought at $2399.80 are now worth in the region of $3465. That’s a 44% return in just 7 months, if that stock was sold now.
Some say that due to Google’s current position in the market as the USA’s most popular search engine, there’s not much hope for future growth or a return on any investment, but considering their stock was priced at sub-$500 at the beginning of 2007 means they’ve increased in value by 40% in the last 11 months alone so I’d say there was still plenty of potential left.
One of the great things about Google is their ability to diversify. They may have started out as the geek’s choice of search engine, but just look at them now; email providers, domain name registrars, payment processing, offering their search technology to the corporate sector, telecommunications, mapping, social networking, and even renewable energy.
No growth potential?
Now, Google don’t pay out any dividends so the only way for me to make any money with the stock is to sell my share. I guess time will tell whether I get a return back on my investment.
Here’s an interesting read; see what people were saying about Google stock just before they went public.
