Google (GOOG) Stock Passes $800
Shares of Google (Nasdaq: GOOG) passed a milestone of $800 on Tuesday morning, the morning after a report of possible Google retail stores in the works.
Google stock rose to $803 at 10:15 am EST on Tuesday, up over 1 percent. It reached $803.58 earlier Tuesday morning, the first day of trading after the long Presidents' Day weekend.
The technology company, based in Mountain View, Calif., reached $700 a share more than five years ago.
Aaron Kessler, senior research analyst with investment firm Raymond James, said since Google's better than expected fourth quarter earnings were announced last month, investors have become more "comfortable" with Google's mobile business. Kessler said he is not sure if the stores would contribute to Google's sales growth.
"The Android ecosystem is doing pretty well. It continues to gain market share so it's hard to say if that will really help them more," Kessler said.
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Late Monday night, the Wall Street Journal reported that Google Inc. had plans to launch retail stores to display its consumer electronics products in direct competition with Apple Inc.'s widely popular Apple stores.
The Wall Street Journal report cited anonymous "people familiar with the matter."
Apple has about 400 stores in 14 countries. Tech competitor Microsoft has 64 stores, including 31 permanent retail locations plus 33 pop-up locations.
Read more: Microsoft Stores Evoke the Apple Look
Rick Summer, analyst with Morningstar, said investor sentiment toward Google has become more positive with Google's continued strength in search and display ads while regulatory concerns seems to have subsided.
"As the year unfolds, we expect investors to divert there focus towards profitability," Summer said.
However, Summer said the stock no longer represents a compelling "buy," in Morningstar's judgment, so it is a three-star "hold."
Google's smartphones with its Android operating system are currently sold on its Google Play website, through cell phone carriers and retail stores like Best Buy.
Last year, Google introduced its first Nexus tablet with the Nexus 7. Months later, it introduced its second, the Nexus 10. It has already released a few versions of an affordable Chromebook laptop built by Samsung.
Google trades at about 20 times its 2013 earnings estimates, versus rival Apple, which trades at 10 times this year's profit estimates.
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