Mike Butcher, editor at large at TechCrunch, reflected in CNBC’s TechCheck on the last ten years since Google Inc (NASDAQ:GOOG) became a publicly traded company. Butcher recalled the “very odd structured deal with IPO Dutch auction,” with founders coming out saying things like “don’t be evil”, which was an unusual thing that Steve Ballmer then called “a one trick ponny”. He added that back then, when the company was making the IPO ten years ago, it was not obvious Google Inc (NASDAQ:GOOG) was different and that no one knew what it was capable of. He said the company took advantage of the growth in the internet economy.
The stock price has gone up more than tenfold since, earning the shareholders who bought the stock at the IPO and keep on holding it, a whopping 976% total return on their investments, or almost 27% annual return.
Butcher added the growth phase is still not over for Google Inc (NASDAQ:GOOG), as the company keeps leading in innovation with its projects, which gives it the edge other companies don’t have. Moreover, the ad market is still growing, and the company is continuing to aim to monetize its mobile business, like other big tech companies such as Facebook Inc (NASDAQ:FB) and Twitter Inc (NASDAQ:TWTR).
Given Google Inc (NASDAQ:GOOG)’s stratospheric rise it is questionable why Yahoo! Inc (NASDAQ:YHOO) not enjoy the same success as Google Inc (NASDAQ:GOOG).
“The irony with Yahoo! is that it, in fact, gave Google Inc (NASDAQ:GOOG) some of its first big breaks in the market, by using their search engine in the first place. Yahoo! could have had the potential to be as big search engine as Google Inc (NASDAQ:GOOG). It took through away lots of its technology, and became a media company. Frankly, it’s media stock now. That’s where it sits at the moment, trying to get that technology mojo back now.”, Butcher said.