Only a week ago, last Friday, technology Internet giant Google (NASDAQ: GOOG) gained $66.9 billion in one day - a record for Wall Street. After the company reported a sharp rise in earnings and sales that shattered Wall Street’s expectations, the stock rose 16.3%. According to FactSet, this increase raised Google’s market capitalization to $478 billion.
Acquisitions Paying Off
One of the key reason as to why Google jumped so much is the surprising performance of its 2006 acquisition: YouTube. According to a recent report, Google claimed that the popular video-sharing platform reaches more 18 to 49 year-olds in America than any U.S. cable network. Their recent efforts to reach customers by marketing products via online videos are paying off, too. In the second quarter, Google's ad revenue rose by an impressive 11 percent, to $16.02 billion.
Even More Room for Growth
According to J.P. Morgan (NYSE: JPM), Bernstein Research, Nomura Research, Jefferies and Evercore (NYSE: EVR), Google shares can still reach higher levels. After Friday's rally, they all raised their 12-month targets to $800. In other words, analysts are confident that the multinational technology company will go above the half-trillion-dollar mark to $547 billion, making it only the second company (along with Apple (NASDAQ: AAPL)) to be valued above half-trillion dollars. However, Google is still trading at a valuation distant from that of Apple's; Apple is currently valued at a whopping $740 billion.
This surge alone caused the Nasdaq composite index to rise to a record intraday high. Shares are currently priced at $663.02, and many factors are pointing to that number increasing even more.