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Showing posts from October, 2013

Google is at $1,000! Better than Apple, Facebook!

Driving to work this morning the newscaster on my local NPR affiliate said this:“And today is a historical day for Google because the stock’s price crossed $1,000. Meanwhile Apple is just at $508, Facebook is at $54 and Microsoft is at $35. Though Google is still very far away from Berkshire Hathaway’s $117k stock price.”This bugged me. A lot.A stock’s price is the value of an asset based on future earnings expectation. In that sense Google should be happy that the street believes that it has a bright future.But that number, $1,000, is not good enough context to judge if Google is doing better than Facebook or Microsoft or anyone else.Setting aside the fact that companies can be in dramatically different businesses… is there a better way to compare performance than compare stock prices? Yes. Three quick ones.Market Capitalization.A simple way to graduate up from a silly stock price comparison is to look at the market cap for the company. It is equal to share price times number of shar…

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