Google Share Price Breaks $800 Barrier

Amid renewed confidence in the company's ability to reap higher profits, Google's stock breaks $800 for the first time.

Google's stock price has topped $800 (£516) for the first time amid renewed confidence in the company's ability to reap higher profits.

The milestone comes more than five years after Google's shares initially hit $700, but then tumbled as the 2007 financial meltdown sparked global recession.

Its resurgent stock is an implicit endorsement of co-founder Larry Page, who replaced his managerial mentor Eric Schmidt as chief executive in April 2011.

Google's stock has risen by 36% since Mr Page took over.

Most of the company's gains have occurred in the past seven months - a period that has overlapped with a sharp downturn in the stock price of rival Apple.

The iPhone maker's market value has plunged by around $230bn, or 35%, since late September.

But it remains the most valuable US company with a market value of $432bn. Google now ranks third with a value of $266bn.

Tuesday trading saw Google stock climb 1.8% to close at $806.85.

Standard & Poor's Capital IQ analyst Scott Kessler said: "There are probably even going to be people talking whether Google's stock can get to $1,000.

"Never underestimate the excitement that can be caused by a rising stock market and a rising security."