Reasons for stock price changesbetween week 42 and 45 in 2004 considering as example GOOGLE Inc.
...an service. Market observers see in Froogl´s expansion a step against the Google rival Yahoo. In March Yahoo had taken over the French Internet service Kelkoo which also offers price comparisons. Froogle works with the same principle like Google, but only delivers searching results of on-line traders. The E-Commerce suppliers must not pay to be listed with Froogle. Google finances Froogle about the sales of advertising spaces which appear besides the Froogle-searching results. On 13.10.2004 Google published that they wanted to expand in India. The number of the employees as well as the infrastructure of both subsidiaries in Hyderabad and Bangalore should be developed further. The new employees should cover additional areas with her activity. First purpose of the enlarged number of developers in India is the further internationalization of the searching machine. In the future Google should be available in more than 100 languages. During the next months in Bangalore different regional languages of India will be implemented in Google. On 15.10.2004 Google has released his application "desktop Search". The free program can be used to find files, e-mails or other contents on the own computer. With this development was Google faster than Microsoft. Microsoft promises suitable searching tools in its next Windows version. Thereby Google hopes for a higher spread degree of its searching technology. An increaseed number of users promises more stable advertising revenue which is responsible for more than 90 % of Google´s turnover. Google headhunted before a row of famous Microsoft programmers, thus was already speculated about an own web browser from Google. This week analysts valued the stock neutrally to positively. The stormy development of the stock has surprised the experts. Google lives from Internet advertisement and here the forecasts have clearly improved for the next years. 3 Week 43 (18.10.2004 – 22.10.2004) Calendar week 43 was determined by the publication of the quarter figures. The opening price on Monday was 149.16 USD per share and the trade closed on Friday with 172.60 USD. Due to very good enterprise figures the stock could rise on more than 15 %. The beginning of the week the message was spread that the use of the desktop search of Google on a computer used by several persons can lead to massive data security problems. AOL Europe has finished the collaboration with Yahoo in the area sponsoring advertising links. The enterprise has decided to use the searching technology of Google. In addition Google delivered this week an advertising customers-forecast and wants to have in 2008 about 372,000 new advertising customers. Nowadays the searching machines operator have worldwide more than 280,000 partner's enterprises. Sponsored advertising links are the most important source of income of enterprises like Google and Yahoo. On 21.19.2004 Google announced the commercial figures of the third quarter. The searching machine´s operator achieved a profit of 52 million USD (19 cents per stock). Google could more than double his profit in comparison to the year before quarter (20.4 million USD). Thanks to a hard rising income from the Internet advertisement the turnover with 805.9 million USD has increased about 105 percent. The enterprise said that the figures stood for a growing number of customers and another boom in the on-line advertisement. Expenses from a lawsuit with Yahoo pressed the profit. Without these costs the profit would have reached 45 cents per share. The cash continuance rose from 308.9 millions on 608.9 million USD. Google was reserved with a view of the future business. However, Google head Eric Schmidt also spoke of a confident outlook for the next quarters. Like the competitor Yahoo, Google creates the main part of its turnover with advertisement in the Internet. This market seems to grow again strongly specially in the USA. The expectations of most of the people were exceed by far and thus the stock price rose on Friday by 15 %. The analysts have raised the estimates for the Internet-searching machines operator Google. Therefore, the profit will be seen next year with 3.67 USD per share, after originally a yield of 2.91 USD per share has been promised. The course purpose was clearly raised for the Google stock from 130 USD on 200 USD. The experts explained the increase with the view that Google becomes further dues in the searching advertising market. The advertising revenue has risen in the third quarter by 107 % on 493 million USD. Thus Google has let important competitors like Yahoo behind. The US-investment bank SG Cowen assumes that the worldwide market of the paid-up advertisement in searching machines will increase during the next five years about on an average 38 percent and climb therefore from 2.6 billion USD last year on 13.4 billion USD in 2008. Google will be one of the primary beneficiaries of this development. The experts assume that Google will win more dues of the market and will exceed the growth rate of the competitor Yahoo. In this week Google also profited absolutely from the weakness of other high tech and Internet companies. 4 Week 44 (25.10.2004 – 29.10.2004) In week 44 the trade with the Google share was opened with 187.40 USD and the closing price on Friday was 190.71 USD per share. After the publication of the good quarter figures in the last week the share price moved further on a high level and touched the 200-dollar border. Investors place on an especially dynamic branch. Few years after the fall and after a painful selection process the views of the net economy appears better than ever. The already presumed to be dead on-line announcement market booms. Only three percent of all advertising budgets walk on the Internet. Analysts expect fast changes. The potential is gigantic, but the expectations as well. In the future Google have to face some challenges. The market for searching the Internet is limited. According to expert's opinions the increase in commercial announcements in the USA could clearly drop already in 2005. And so it is more important to develop new services like desktop search and e-mail and...