What is the price of Google stocks now? What caused the change in the price of G

Question

What is the price of Google stocks now? What caused the change in the price of Google stock from IPO price of $85 a share to its May 2011 price (Table 32.3)? Keep in mind Google recently had a stock split.

52 Weeks Net Chg Vol Lo Stock Sym Div Yld% P/E 100s Hi Hi Lo Close 35.56 22.48 Intel 604.83 502.80 Google GOOG 0 2.57 17.33 262790 35.20 34.74 34.98 +0.05 0 29.84 16910 587.52 578.98 584.77 +4.82 0 The information provided by this quotation includes the following: 52-Weeks Hi and Lo: The highest and lowest prices paid for a share of stock in the previous year. Stock: The name of the corporation whose shares are being traded. Sym: The symbol used as a shorthand description for the stock Div: A dividend is the amount of profit paid out by the corporation in the preceding year for each share of Yld%; The yield is the dividend paid per share divided by the price of a share. P/E: The price of the stock (P) divided by the earnings (profit) per share (E). This indicates how much a purchaser is stock. effectively paying for each dollar of profits. Vol 100s: The number of shares traded in hundreds. Hi: The highest price paid for a share of stock on the previous day Lo: The lowest price paid for a share of stock on the previous day. Close: The price paid in the last trade of the day as the market was closing. Net Chg: The change in the closing price yesterday vs. the previous day's closing price. Source: E-Trade (September 17, 2014).

Explanation / Answer

The current stock price of Google is $1,025.36. The stock split in 2014. Hence, the effective price for a share bought at IPO = 1025.36 x 2 = $2,050.72. The price in the table is $584.77.

The primary reason for the increase in stock price is phenomenal growth in sales and profits. Even today, Google is able to grow at a very healthy rate of over 20%.

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