First things first: Google’s (NASDAQ:GOOG) stock price of close to $600 per share is the most prohibitive factor for inclusion in the Dow.
Get over it.
The stock opened up for business at $85 per share in August 2004, jumped 18% on the first day and has never looked back. Scorching-growth companies that don’t split their stock are becoming the norm, so enough about concerns over stock price-weighting measures in the Dow.
There’s a reason for the price: Google practically invented the search engine industry, and in doing so also became a leader in cloud computing. It is the proud owner of YouTube, and it developed Android, the open-source mobile platform that powers a gazillion phones. Want more? Gmail is a software platform tool, Google TV is on the way, as is Google Books, and if you can’t find its headquarters in Mountain View, Calif., you can always Google directions on Google Maps.
Since I am limited to 250 words, let’s just say Google is an extraordinarily dynamic force across huge swaths of the American business landscape. For goodness sake, the company is a verb and a noun!
Here are some better numbers to look at: Google’s market cap of $184 billion, revenues of $40 billion, net income just a shade over $10 billion and a $48 billion cash war chest. GOOG also boasts a quarterly year-over-year growth rate of nearly 70%.
Google will be around for the long haul. Get used to the price and let ‘em in.
– Marc Bastow, InvestorPlace Assistant Editor