I just saw on Drudge that Google stock is up to $500.00 a share. Now I don't understand much about finance, I barely understand lunch money. I am curious, though. I use Firefox and it has Google connections. It's free. I have a G-mail account. It's free. I regularly Google stuff on line when I want to figure out the answer to(mostly) unimportant questions. It's free. Okay, there are a few little ads that I never look at.
So, here is my question... Here is a business giving away it's product and services and each individual share is worth FIVE HUNDRED DOLLARS! What does a shareholder get? How in the world does a company that gives it's service away make a profit to the stockholders?
I don't understand, am I an idiot or do folks with disposable income just enjoy throwing it away?
Didn't we just go through this same thing at the end of the Clinton Administration with the bursting of the Great Dot Com Bubble?
Update: in comments my Pal, Teresa, who is pretty smart even if she's some kind of Yankee, says that Google makes bazillions of bucks from advertisors. Okay, I believe it but then I must ask, who reads the ads? I read some at first but quit because when they're ads claiming to have what I'm looking for I always managed to find it cheaper. So, I never read the ads.
Granted I might be just a little unusual but I'm certainly not unique. I don't know for sure but somebody, the advertisors or the stockholders will eventually get sc, um, oh well, I just hope they're all getting kissed.