Google, Facebook, Netflix or Amazon have all seen their stock prices rise in the trading week closed last Friday. In what was one of the highest stock gains by a company on a single trading day, Google shares went up by over 16 per cent, adding over $60 billion to the company’s market capitalization – and raising it to $450 billion.
The price of Google shares went over $700 for the first time in history, after the company’s Q2 earning report published on Thursday beat even the most optimistic predictions, posting $17.7 billion in revenue and a year over year growth of 11 per cent.
On-demand media streaming company Netflix posted an even greater per centage gain than Google on Thursday, with its stocks jumping more than 18 per cent. Most of it is owned to the subscriber increase from its continued worldwide expansion, which is starting to overturn its initial profit loss. Netflix claims that it will be available in over 200 countries before 2017
Facebook joined into the trend, with its stocks growing 4.5 per cent on Friday, ending the trading week at $94.97. Investors are now questioning when rather than if the social media giant’s share will break the $100 mark. E-commerce giant Amazon’s stocks have also reached a historic $472.79 on Friday, after a Black Friday-like sale directed towards its premium members posted record sales.
All of these made the NASDAQ Composite Index jump up by 64.24 points on Friday, reaching 5,163.18, the highest readings ever for the stock market index, beating a previous June 23 record. NASDAQ is known as the prime stock exchange for tech companies.
These readings continue 2015’s tech stock surge, as multiple companies reported significant stock price growth since the beginning of the year. By far the most impressive is Netflix’s 135 per cent surge, while Apple (18 per cent), Facebook (22 per cent) and Google (28 per cent) have also had their stock fortunes better this year.
This has sparked fears within analysts of another tech sector burst similar to the dotcom crash of ’99-’00. Then, investors predicting the rise of the online hurried to invest in non-profitable start-ups, causing the NASDAQ Composite Index to drop by over 50 per cent. However, skeptics are pointing out the fact that, despite a similar growth in the sector to the one in the late 90s, the tech landscape is now dominated by stable, powerhouse companies who produce billions in revenues and profits.
Image Source: Reuters