What could you buy with $1,000? A new MacBook? A pair of Louboutins? How about one share of Alphabet stock?
Alphabet, Google’s parent company, crossed a major threshold Monday by passing $1,000 per share, just six days after Amazon reached the same milestone.
It’s nothing to sneeze at; only one other stock on the S&P 500 index (Priceline) has a stock price in the quadruple digits. Alphabet’s stock price has been surging this year, and the company’s market value, about $680 billion, is second only to Apple.
So, why is Alphabet’s stock experiencing such a boom? The success is due in large part to the continued dominance of Google’s search engine (obviously), and the ad revenue that comes with it. Alphabet’s other bets, including driverless car company Waymo and connected device marker Nest, are also experiencing an uptick in profits.
Android and YouTube are also starting to pull in more capital for the company as well, despite predictions that YouTube would lose anywhere from $750 million to $1 billion of projected profit after its ad controversy earlier this year.
Looks like investors didn’t have much to worry about after all.
Congrats Alphabet! Welcome to the club.