Google recently hit the milestone of $1,000 a share in the US stock market. The New York Times and Wall Street Journal reported on it, both taking different angles and tones. Being a business journal, the WSJ provided a full review of this accomplishment, comparing it to other tech companies gains in the stock market.
The Times analyzed Google’s milestone from a person looking up at a great building: that Google is a huge company that will put ads on all of users devices and profit greatly from them. The article even talked about how Google (along with other market giants such as Apple) has large amounts of cash in overseas accounts, to avoid paying as many taxes here in the US.
“The U.S. corporate tax rate is supposed to be 35 percent, and Google was paying an effective rate of about 15 percent,” said Colin Gillis, an analyst with BGC Financial. “It wasn’t like there was a massive re-acceleration of Google’s business here.”
Whether this has something to do with Google’s success or the newspaper was trying to divulge all information about Google, it seemed to have no relevance to the story of Google’s shares prices.
Compared to The Times, WSJ took a much more positive tone towards Google’s milestone, even calling it a “a grand moment”.
“The mobile Internet appears to be helping, rather than hurting, Google Inc.’s lucrative advertising machine, easing investor worries and propelling its shares past a major milestone.”
The WSJ also analyzed other tech companies’ stock prices, but concentrated on the rising usage of mobile devices which allowed for Google’s accomplishment.
WSJ also reports that this milestone could also spur Twitter’s upcoming IPO to higher heights.
“The positive trend could help raise investor sentiment in Twitter Inc., which is planning an IPO this year and said it makes 70% of its revenue from mobile ads. Shares of companies with a stake in mobile advertising, including Facebook Inc., Pandora Media Inc. and Yahoo Inc., all showed strong gains on Friday.”
So, if Google is doing well, other Internet companies profit as well.
The Times took a different route, concentrating on how Google’s success separates it from the competition, rather than boosting up other Internet companies.
“It is a reminder of the new order that has taken hold in the technology world in just a few short years — and how far apart the winners are from the losers.”
“On Friday, Google announced a new partnership with a rival, Facebook, in which it will begin selling ads that can appear on the desktop version of Facebook’s service. It also announced changes to location-based searches in international markets. While this yields more profitable ads for Google, since people are generally more likely to click on things targeted at them, it also can run afoul of privacy advocates and regulators.”
Whether users like it or not, they will continue to see Google ads on almost every website that they log on to. Google, and other tech companies, are here to stay.