Google Inc’s Market Cap Surges by $65B, Co-founders Richer by $8B in One Day

Google, Brin, Page, Schmidt

The market capitalization Google Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG) increased by $65 billion to approximately $403.7 billion. The search engine giant recorded its biggest one-day gain today.

The surge was driven by its second-quarter earnings that exceeded the expectations of Wall Street analysts. Google delivered non-GAAP earnings of $6.99 per share on $17.7 billion in revenues. Wall Street analysts expected the search engine giant to report earnings of $6.70 per share on $17.7 billion revenue.

The Class A (GOOGL) and Class C (GOOG) shares of Google increased 16% today. The search engine giant’s Class A shares closed $699.62 per share.  The stock gained more than 31% in value year-to-date.

Google’s Class C shares closed $672.93 per share. The stock gained more than 27% in value year-to-date.

Walter Todd, chief investment officer at Greenwood Capital Associates told Bloomberg, “This is a pretty decisive breakout to the stock after it’s been range-bound for a while. It’s a good feeling. The move in market cap is just insane.

Google co-founders’ wealth increased 24% this year

Google co-founders Larry Page and Sergey Brin became wealthier by around $8 billion. Each of them added around $4 billion to their individual fortunes today.

Google Co-founders' Fortune increased  billion

Based on Bloomberg’s Billionaires Index, the wealth of Google’s co-founders increased by 24% or approximately $7 billion each this year. Brin’s net worth is $32.3 billion while Page’s net worth is $32.7 billion.

Google Chairman Eric Schmidt’s fortune increased 22% or $1.8 billion to $10.1 billion this year. He owns 1.3% stake in the search engine giant.

“People should take away that Google is a stronger and healthier company than what the Street had previously understood. Both Google and Facebook are benefiting from these secular growth trends, which is really moving advertising dollars online from offline. There’s still plenty of growth left for both companies,” said ,” Colin Sebastian, an analyst at Robert W Baird & Co.

Today, the stock price of Facebook Inc (NASDAQ:FB) climbed 4.53% to $95.04 per share. Its market capitalization is approximately $246.98 billion. Mark Zuckerberg’s net worth increased 21% to $41.6 billion this year.

Source: Bloomberg