Google shares hit another record high, again

Reuben Lee | Oct 15, 2007

It's just amazing how Google shares keep soaring in price. I mean, just three years ago, the company stock debuted at US$85 and, at that time, many people remained skeptical about Google. But when the shares grew at a phenomenal rate to hit US$400 in 15 months, there was no longer any question about the company's growth potential. Earlier last week, the Internet search giant showed no signs of slowing down when shares soared past the US$600 barrier. Analysts are now estimating that Google shares will smash the US$700 mark by the end of 2008, though given its current growth rate (at the time of writing, it was priced at US$615), we suspect the stocks will end the year on an even higher note.

The first thing that always comes to mind when I read a report on yet another new price high for Google stocks is the lucky sods (read: Employees) with stock options. Just to do a little calculation, if they had gotten their shares when the company first started trading in 2004, their stock prices would now be worth seven times the initial value. Even for those who joined the company much later, say at the end of 2006, theirs would have risen by more than US$150 per share. That's almost a cool US$75,000 profit in the pocket if you had 500 shares to begin with.

Now if I had a time machine (DeLorean + flux capacitor + crazy scientist) to bring me back to 2004, all I would need to do is raise US$510,000 to buy 6,000 Google shares at US$85. Which safely back in 2008 would net me more than US$3.6 million in the bank when Google shares hit US$700 a piece. I'd retire and head straight for the Bahamas or Bora Bora. What a life that could have been.

Reality sucks. Which means I'll be sticking to my twice-a-week lottery buying ritual and my dreams of hitting the big payout soon.

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