Forbes.com recently did an analysis on the stock rise by Google, the world’s largest search engine. This is a result of the tech giant’s 30% rise in shares for the past year. From February of last year, Google’s share increased by $200, from its value of $600 to its now price of $800. The reason behind is credited to Google’s strength in mobile monetization, causing a change in investor sentiment reflecting in the company’s stock gain.
According to the report, Google’s rise in stock is attributed to its ability to take advantage of its mobile user base and continuous exposure to growing markets, making its international presence more known in the mobile industry. In addition, the stabilization of CPC costs also contributed to improving investment sentiment.
From $2.5 billion in 2011, the company’s mobile revenues have increased to over $5 billion, more than twice of its income two years ago. One factor is Google and Android’s partnership, as users are most likely to use the search engine when searching for information as compared to those who do not own Android-based smartphones. Windows-based handsets, for example, are configured to use Bing as its default search engine, save for countries such as Russia and China to name a few. Additionally, with Android quickly dominating the smartphone market, investors equate that with Google’s domination of a larger portion of the market. When you think about the company’s mobile search ads division as its second largest department following the desktop search section, it really isn’t a surprising consequence.
When it comes to Google’s international revenues, 54% of the tech mogul’s income in Q4 2012 was generated outside the United States, proving once again of Google’s dominance in Asia, Latin America, and even Africa. Experts state that this amount will continue to increase in the next years to come. As for CPC costs, the cost has constantly decreased during the last few years, hitting a stable and more consistent value in mobile ad spending. Gartner predicts that with mobile ad expenses continue to increase, from $11 billion this year to $25 billion in 2016, overall stabilization of CPC prices will occur in the future.