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Google founders make $2 billion each in an hour

Posted Apr 17 2008, 06:28 PM by Charley Blaine
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Google shareholders had to be thrilled by the stock market's reaction to the company's first-quarter earnings report on Thursday afternoon.

And nobody could have been happier than Google founders Larry Page and Sergey Brin. Each saw the value of his stake jump about $2.2 billion in less than an hour as the stock jumped 17% to $526.50.

The stock took off after the company beat Wall Street estimates on revenue, net income and earnings per share for the first quarter and crushed just about all concerns that Google's business might be peaking. 

At the end of the day, Page's 29.1-million share stake jumped in value from $13.1 billion to $15.3 billion. Brin's 28.6 million shares jumped in value from $12.9 billion to $15.1 billion.

While Page and Brin, who started Google while they were students at Stanford, are no doubt happy at their gains, they've also endured some real pain from the stock market's wild volatility in the last five months. Each man saw the value of his stake drop more than $9 billion as Google shares tumbled nearly 44% from a $732.94 closing high in November to a low of $413.62 in March.

Thursday's gains were worth a touch less than 24% of what they'd lost. 

Addendum: This is to bring the numbers up to date with Friday's close. Google jumped 20% to $539.41.

So, in 24 hours, Page's stake jumped up in value by $2.62 billion. Brin's net worth went up $2.57 billion.

And I should note that CEO Eric Schmidt's holdings in Google grew from $4.81 billion to $5.77 billion, a gain of some $961 million in a day.

Comments

 

They never "lost" or gained anything. That only happens if you sell. They own an interest in the company and get a salary but stock means nothing untill sold. So! no loss no gain, just on paper for now. What they are "worth" now that is another story.

I wonder if these two ever had to worry about buying heating oil, gas to go to work, and food on the table....I'm still trying to figure out exactly what Google does....other than a search engine...

I think it's sad that all these negative comments are being posted. This article shows that you can make tons of money still if you have an idea and are willing to take a chance. All these people who are crying that they can't afford this or that with the 30-40 grand they make a year should reassess what they are spending their money on. More than likely those are the same people who bought too much house when the market was good and tried to cash out way too much equity. Or they have $10,000 in credit card debt because they absolutely have to have things right now instead of saving up for it and paying cash. Instead of crying about how much gas is, why don't you invest in those big oil companies that are making huge profits. You'd get a piece of it too. It only takes $50 to get started in investing for your future but people are more likely to spend $50 worth of lottery tickets. Stop crying. No one is going to bail you out of your financial situation so get over it and find a way around it before the government does step in and makes us all poor instead of allowing us the opportunity to be rich. Do your kids a favor and teach them to be financially responsible so they don't make the same mistakes you did.

I think there are many of us who are very frightened and unsure of what life will be like next month.  But still the guys at Google are not the problem and they are not to blame for how this country stands today!!!  Let's see, what is it called???  BUSHENOMICS!!!!

Why are people so bitter at how much they are worth?  Go make something people want and you can be worth a lot of money also.

I have no problem with this! This is america, Land of the free! But I do hope they donate a very large portion of this money. There are so many American that are losing there jobs, there homes. And would be very greatful to people that have more than they could ever spend in a lifes time. Also one more thing! The people out there that won big lottories and still kept there jobs, I disagree with this concept because you have more than you will ever need and you should give up your job to someone that needs a job to support there family. Please donate your time to charity!

What can you say?  They took a risk and made it big!!  Hurts to see that kind of money being made when the overall economy in America is getting buried.

This what enterpreneurship is all about. Gamble, you may winn or lose.

And for the rest of you seating in your fat rear end, moning, groning, complaining and critisizing.  Eat you liver

At least they started the company .... they took the risk and made it work. Not like these crooks running oil companies and brokerage firms .... they didn't start the company, they are employees too, they didn't earn it and shouldn't be paid the ridiculous money they're getting. It's a shame that the shareholders are getting screwed by these same companies too. The regular employees of the oil companies could get a million dollar bonus, per person (which would change their lives), and the oil companies would still be profitable. So paying these corporate crooks exorbitant salaries of tens or hundreds of millions of dollars is shameful and hurts America in so many ways.

For anyone (inthederak) wondering why wall street "expects" cetain numbers, is because the analysts at these companies have to calculate those numbers based on formulas and financial scenarios. So there is a whole science behind it. A lot of spreadsheet work. They don't just "expect" their favorite numbers to pop up and see what the company reports. Its nut roulette.

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