(MP) Talk about making a killing on Wall Street, both Google’s founders Larry Page and Sergey Brin, made a whopping $8 billion dollars on Friday. Reports show the value of Google, the $400 billion search engine giant they own jump a stunning 16%. The internet mammoth reported strong second-quarter results, sending its stock climbing through the roof. Google’s market capitalization, already around $403 billion ($544 billion), rose some $65 billion on Friday to finish up at $468.3 billion, according to S&P Dow Jones Index, Marketwatch said.
“People should take away that Google is a stronger and healthier company than what the Street had previously understood,” said Colin Sebastian, an analyst at Robert W Baird & Co. “Both Google and Facebook are cashing in on these secular growth trends, which is really moving advertising dollars online from offline. There’s still plenty of growth left for both companies. It has been a good week for US tech stocks period,” he added.
Google’s Founders wealth rises
The fortunes of Page and Brin (Google’s founders) are up 24 per cent this year, a rise of about $8 billion each, Bloomberg Billionaires Index confirmed. Google chairman Eric Schmidt, who owns 1.3 per cent of the company, has upped his fortune 22 per cent this year, rising $1.8 billion to $10.1 billion.
The second confirmation came by way of EDGAR filings. The statement read of Google’s founders, as of June 19, 2015 Page not only owned an astounding 21,996,904 Class A shares of Google, but also 22,058,004 Class C shares. And Brin held a gigantic 21,479,312 and 21,539,381 Class A and Class C shares of Google, respectively. And to think this all happened in a single day.
Google’s shareholders extremely happy
The new Google results were certainly impressive and the company’s shareholders are ecstatic. Revenue for the second quarter climbed according to analysts’ expectations at 11% year over year (18% on a constant currency basis), to $17.73 billion. And earnings came in at $6.99 per share, compared to estimates for $6.75 per share and marking Google’s first earnings beat so far in 2015. For that, Google investors can partly thank the company’s core advertising business. Google’s ad revenue continues to be pressured as more consumers access its online services on mobiles devices such as smartphones and tablets, where ad rates are typically lower. The service provider, under increasing competition for mobile ad dollars from rivals such as Facebook Inc, tweaked its algorithm for mobile searches on Tuesday to favor sites that seem good on smartphone screens.