Each day, Benzinga takes a look back at a notable market-related moment that occurred on this date.
What Happened? On this day in 2004, Google held its initial public offering.
Where The Market Was: The Dow Jones Industrial Average closed at 10,040.82 and the S&P 500 traded at 1,091.23.
What Else Was Going On In The World? In 2004, the Boston Red Sox won their first World Series in 86 years. Facebook — now Meta Platforms Inc META — was launched, but the platform was only initially open to Harvard students, other college students in the Boston area and other Ivy League schools. The average price of a new house was $274,500.
Google Goes Public: Google, now known as Alphabet Inc. GOOG GOOGL, finally held its highly anticipated IPO in 2004, six years after it was founded. The company had already become a search juggernaut by that time, and IPO shares were priced at $85 per share for a valuation of $23 billion.
Surprisingly, the IPO auction didn’t go particularly well for Google in the aftermath of the dot-com bubble. Google ended up cutting its planned IPO price from an original range of between $108 and $135 to a new target range of between $85 and $95 before finally settling on the low end of the reduced range.
On Google’s first day of trading, the stock jumped 18%. Google split its stock in a two-to-one split in 2014, and reorganized its company under the Alphabet umbrella in 2015.
It completed a second 20-to-1 stock split in 2022.
IPO investors that have held onto the stock have certainly been rewarded. Over the past 18 years, Google's stock has generated an overall return that's more than 10 times higher than the S&P 500.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.
All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.
Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.
Rate collection and criteria: Click here for more information on rate collection and criteria.