Google+ is still in private beta and the company is facing issues from bug discovery, to heightened competition from Facebook. But this has not stopped Google from earning a bonus. In spite of Morgan Stanley’s doubt on Google+ and downgrading of the company, Google shares have risen by more than $60 giving the company extra $20B in its valuation.
The day before the announcement, the stock closed at $482.80. It rose to a high of $546.60 on July 7 within 10 days, reports Washington Post. This is a $20.6 billion gain to its market cap (with 322.25 million hares outstanding). The stock however dropped to $532 at Friday’s close making some correction.
Google Plus has received fantastic reviews from privacy activists, bloggers and power social media users. But it is yet to pass the popularity test with the common man. Facebook is used by more than 750 million people across the World.
There are certain challenges much hyped Google+ will have to overcome. Users use Facebook to connect with friends, LinkedIn to connect with professional circle and discuss business, and Twitter for knowledge and news sharing. Google+ is yet to establish itself, and it looks like Google wants to be everything to everyone. This might not work, but Google seems to be working to make it happen. After all the new network has come out in spite of Google owning several social platforms earlier like Orkut, Buzz, Me and Youtube.
What do you think? Is this rise in share price justified at this stage? Will you pay a premium while buying share when the product is in beta? Share your thoughts below.