Google’s market cap may drop below $100 billion — like tomorrow
On November 7, 2007, Google’s stock hit its all-time high of $747.24-a-share. After a second-half of incredible growth (in 2007), $1,000-a-share seemed like it was only a matter of time. And some were even calling for $2,000-a-share. (Though, to be fair, Silicon Alley Insider’s Henry Blodget didn’t say exactly when he thought it would hit $2,000-a-share.) People aren’t saying that anymore.
Google’s stock fell over 6 percent once again today. It closed below $350-a-share ($346.01 to be precise) for the first time since early 2006.
During its peak, Google’s market cap was around a quarter of a trillion dollars. Now, its market cap runs the very real risk of falling below $100 billion. Market capitalization is measured by taking a company’s share price and multiplying by the number of shares outstanding. Google’s is currently at $108 billion, if the trend of the last few days keeps up, it will fall below the $100 billion mark tomorrow.
Apple fell below the mark a few days ago as its stock continues to tank as well. As recently as August, Apple’s market cap was over $150 billion (and it actually briefly surpassed Google’s market cap). Now it stands at $79 billion. Considering that Apple has over $20 billion in cash on hand, that’s pretty incredible.
With Google’s slip below $350-a-share, founders Larry Page and Sergey Brin are likely close to being relegated into the single-digit billionaires club again. (It’s a sad story, I know.) Back in March when Google’s stock hovered around $450-a-share (it shot up shortly afterwards), both Page and Brin were thought to be valued around $13 billion each. Depending on any stock moves they’ve made, that’s probably a lot closer to $10 billion a piece now, and falling fast.
At Google’s stock height, both were worth over $20 billion each.
Because of the stock slump, Google has also fallen behind Cisco as Silicon Valley’s most valuable company.
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About the Author, MG Siegler
MG Siegler writes about technology trends and new media for VentureBeat, with a focus on mobile topics, social elements and key news stories. Before that, MG wrote about technology on his blog, ParisLemon. Originally from Ohio, MG attended the University of Michigan where he studied film. He's previously lived in Los Angeles where he worked in Hollywood and in San Diego where he did web development. He now lives in San Francisco.