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Share price is relatively meaningless. It needs to be paired to total shares outstanding. It's arbitrary by itself because it's a function of shares outstandin
by trevmckendrick 13y ago
Share price is relatively meaningless. It needs to be paired to total shares outstanding.
It's arbitrary by itself because it's a function of shares outstanding and total market value, one of which the company can (relatively easily) control via stock splits.
- smoorman1024 13y agoWell GOOG added $36 billion dollars of market cap overnight. To put that into perspective that is 9 BBRYs (RIMM), 1.5 TSLA's, 1.5 LNKD's, or 0.5 UNP's (Union Pacific).
- xentronium 13y agoHow come LNKD is so expensive?
- tanzam75 13y agoLNKD is expensive because it participates in the social-networking stock bubble.
- yetanotherphd 13y agoI don't think stock splits usually result in "X stock price plummets by 50%" headlines.
- guiomie 13y agoI don't think this is what he was insinuating either.
- ketralnis 13y agoNobody is denying this. It's an all-time high for this company. Where do you see people claiming that the $1k number is meaningful on its own?
- pslam 13y ago$1000 is meaningful on its own but not for the reasons most of these comments think: it's an awkwardly large amount to pay for a single share, and an even more awkwardly large amount to pay for a standard option. Standard options are contracts of 100 shares, so that's $100,000 covered by a single option, which at current prices are about $2,500 each. This puts it out of the realm of small time investors, which is why GOOG is one of the few options available as "mini": 10 share contracts. Even at mini it's damn expensive per option. I wouldn't be surprised if they split the stock at some point soon.
- Frozenlock 13y agoIndeed. I wanted to buy 'in-the-money' options not so long ago. When I did the math, I just decided to let it go and check for a cheaper stock.
- pslam 13y agoEspecially if you wanted to do a simple covered-call, e.g: * Buy 100 GOOG at $1000. * Sell 1 Nov 16 $1050 Call. (Edit: Then assuming GOOG doesn't go down significantly it's a profit even if assigned) Normally that would be a relatively low risk position, but you'd need $100,000 in GOOG underlying to cover it, which is a rather large amount for small investors to throw around even with margin accounts. And that's just for ONE option. Edit: Oh, and if you thought $1000 is annoying to trade, check out Berkshire Hathaway: https://www.google.com/finance?q=NYSE:BRK.A https://www.google.com/finance?q=NYSE:BRK.A $175,400 per share.
- tanzam75 13y ago> Oh, and if you thought $1000 is annoying to trade, check out Berkshire Hathaway: If you want to trade Berkshire Hathaway, you're supposed to trade the B shares -- not the A shares. Berkshire A usually trades under a thousand shares per day. Even on a market-value basis, this is still much lower than the B shares.
- ISL 13y agoAlso impressive is the market capitalization per permanent employee: $337B/46,421 = $7.3 M per employee.
- achllies 13y agoShare price is hardly meaningless. Most people (correctly, i might add) think in term of relative movement of the share price, since that is the easiest one to track. In fact, as the second line of the article says: "Shares in the giant online search and ads company rose more than 13% to $1,006, and are now up 41% since the start of 2013." Such a big jump in a big company is what makes this really newsworthy.
- plywoodtrees 13y agoAs far as I can see GOOG has never split?