Google surges above $800

The gains come as investors seem excited about Google's starting a chain of retail stores. In addition, new data show the company's holding on to its lead as the biggest search engine.

By Charley Blaine Feb 19, 2013 8:26PM
© MARK BLINCH/Newscom/RTRGoogle (GOOG) moved above $800 a share on Tuesday for the first time ever.

The shares shot up $13.96 to $806.95, just below its intra-day high of $807. Not bad for a stock that only started trading in August 2004. The shares have risen about 707% since then and are up 14.1% this year.

Google's big move came as stocks enjoyed a nice little rally that pushed the Dow Jones Industrials ($INDU) and the Standard & Poor's 500 Index ($INX) to five-year highs. The Nasdaq Composite Index ($COMPX) finished at its highest level since Nov. 8, 2000.

The Nasdaq-100 ($NDX) moved up 18 points to 2,783, its highest level since September when Apple's (AAPL) big gains were pulling the index higher.

The immediate catalyst that pushed the stock market higher was a Wall Street Journal report about what Google might be weighing as it works on starting a chain of retail stores.
The stores probably would be modeled after Apple's stores, The Wall Street Journal said, and feature Google-branded products such as Android-based mobile phones, tablet devices, "Chromebook" notebook computers that use Google's Chrome operating system and the like.

The store concept apparently represents a change of heart for CEO Larry Page, The Journal said. Two years ago, Google eschewed the idea of bricks-and-mortar stores in favor of selling its Nexus mobile device directly -- but that effort failed.

A retail store would let Google show off Google TV software that is embedded in some TV sets and set-top boxes, allowing people to browse Web video content from their televisions.

Until recently, the company developed mobile software but didn't manufacture its own devices, instead letting Samsung, Sony and others build and sell Google-powered devices on their own or through wireless carriers.

Google also is benefiting as more advertisers place promotions on its website, buoyed by the growing number of users who access the service on smartphones and tablets.

With today's close, Google is one of just four common stocks selling above $800. The others are Berkshire Hathaway (BRK.A), Seaboard (SEB) and NVR (NVR).

The natural question that comes to mind when a stock crosses $800 -- or should come to mind -- is if it is overbought. If you look at a stock's relative strength index, a measure of momentum, the answer Google does look overbought. Google's RSI was 78 where a reading above 70 suggests a stock is toppy.

Google's surge above $800 comes as Apple shares continue to trade well below $500. Apple was down 17 cents in Tuesday trading to $455.99. The shares are off 35% from their all-time high of $705.07 reached in September.

Apple remains the world's most valuable company, sporting a market cap of $432 billion, compared with Google's $266 billion and Exxon Mobil's (XOM) $402.1 billion.
The company grabbed 67% of the U.S. search market in January, Bloomberg News said. Rivals Yahoo (YHOO) and MSN Money-publisher Microsoft (MSFT) had less than 30%  combined, according to ComScore.

The Dow finished up 54 points to 14,036, its best close since Oct. 12, 2007. The S&P 500 finished up 11 points to 1,531, its best close since Oct. 30, 2007. The Nasdaq's close of 3,214, up 18 points, was its first close above 3,200 since Nov. 8, 2000.

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