Google Hits All-Time High on Continued Search Gains, Analyst Notes

| About: Alphabet Inc. (GOOG)

Though arriving at slightly different search numbers, both ComScore and Nielsen agree that Google is firmly entrenched at the top of the internet search ladder. What's more, Google continues to grow its lead. Investors and analysts have taken note of Google's continuing success, sending shares to an all-time closing high of $560.10 Friday. ComScore had Google pegged at 56.5% of the total online search market in August 2007, a 1.3% month-over-month increase; Nielsen claims Google captured 53.6% of all searches in August, a nearly 40% increase year-over-year. In comparison, Google's two largest competitors Yahoo! and Microsoft, each lost search share slightly on a monthly basis according to ComScore. Positive analyst reports by Bear Stearns and Cowen & Co. also gave Google shares a lift, as Bear outlined ways in which Google could multiply its annual revenue nearly ten-fold to $100 billion, while Cowen wrote to clients that Google's pay-search ad revenues should be "partially insulated" from the current economic slowdown. Google shares are now up 21.6% YTD. In other news, the Wall Street Journal reports Google is considering building an undersea, trans-Pacific, high-speed internet cable to increase its bandwidth capacity, allowing it greater control over its infrastructure costs. The move comes as the company attempts to possibly bid for a U.S. wireless spectrum license and offer Internet and VoIP technology to consumers, in addition to the increasingly bandwidth heavy word processing, spreadsheet and email services, known as Google Aps, it already offers free of charge.

Sources: Press Release [ComScore], Press Release [Nielsen] (.pdf), MarketWatch, Wall Street Journal
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Earnings call transcript: Google Q2 2007

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