Google parent nears $1 trillion valuation club
Alphabet Inc, parent of Google, is about to hit market capitalisation of $1 trillion after a rally in its shares
Alphabet Inc, the tech-giant parent of Google, is on the verge of hitting the prized $1-trillion valuation mark. A rally on Wall Street took shares in the company to a record high.
Shares hit $1,439.23, marking a 0.6 per cent rise on the day by the end of trading and a record-high close. This brought its market capitalisation within a whisker of $1 trillion.
Only three other companies in Wall Street history have entered the $1 trillion club: Microsoft, Apple and Amazon. Shares in Amazon have declined to leave the company’s total market cap at around $935 billion.
This most recent rally in Alphabet shares comes as the company faces a period of change. Last month of Larry Page and Sergey Brin, Google’s co-founders. resigned. They created the company in a friend’s garage in the late 1990s.
Alphabet is the world’s fifth-largest technology company by revenue, behind Apple Inc in the top spot, South Korea’s Samsung, Amazon and Taiwanese technology group Foxconn.
Current Google CEO Sundar Pichai will also act as CEO of Alphabet, while Page and Brin serve on the board.
Over the last 12 months shares in Google’s parent company have risen by 21 per cent. It has outperformed the Nasdaq, which has gained 17 per cent in that time.
According to CNN Money, out of 46 analysts that follow Alphabet 37 have a “buy” recommendation and none has a “sell”.
Yet Jim Cramer, the stock-picking host of CNBC’s “Mad Money” programme, said on Monday he wasn’t convinced.
“Now, I don’t like this move. It’s based on nothing fundamental, just the momentum that we see in so many tech names,” Cramer said.
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