In Market Cap, Google Now Bigger Than GE

11 Comments

No matter how long or how deep a severe economic downturn, its residual effects can still be somewhat jarring, such as when a company with annual revenues of more than $182 billion is worth less on the stock market than one with $21.8 billion in annual sales. Over 100 years old, General Electric (s GE), long the vanguard of U.S. industrial might, ended today’s trading session with a market capitalization just a shade under $105 billion. That compares with the market cap of Google (s GOOG), which now stands at more than $108 billion. Granted, we’ve seen this movie before, during the last bubble, when Cisco Systems (s CSCO) surpassed GE.

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11 Comments

trench

Eh, the market will not take Google. The only thing GOOG has to fear is the Government(s). Well, and Itself.

There *could* be another dot-webz bust coming but it would come from Facebook, MS, maybe Yahoo again, and definitely a lot/MOST of the recent upstarts (excluding Twitter – I believe Google would save Twitter if it ever needed saving. Contrary to Eric Schmidt’s wonderfully crafted sarcasmic statements about “ghetto email”, lols.)

Rajiv

It’s pretty clear that GE is overvalued. As much we all love Google, it is unsustainable for a company’s market valuation to be such a large percentage of the total advertising market value. The total ad market is around$480 billion. Online is 8% or $36 bil. Search is 50% of that or $18 bil worldwide. It can grow significantly, but at some point there are limits.

MacKay

Rajiv,
I have been looking for the breakdown of those numbers that you provided in your post. Could you point me in the direction that you found those numbers? I really appreciate it.
Thanks,
MacKay

Frank

This is different than with Cisco because Google isn’t overvalued — GE is undervalued.

M Mudd

That not what the market is saying, they are clearly saying that GE’s financial service unit exposure is wekening the whole corporation

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