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At $1,000 per Share, Google Hummingbird Must be Working

Google-Stock-ChartGoogle’s stock price closed above $1,000 on Friday for the first time ever. They opened in 2005 at around $100 per share, not a bad gain for 8 years. What I’m curious about is whether or not this recent increase in value is tied it Google’s new search algorithm, the one they are calling Hummingbird (for speed and agility). Critics and experts have lots of theories about why stock prices rise and fall, but I have my own theory.

If a public company has a good product or service, their stock price will be strong. While the financial experts will try and give you all kinds of reasons why a particular stock is a better investment than others. Things like P/E ratios and EBITDA and financial measures that the general public may never understand. But in my book, if its a company that provides a product or service that I buy and that I would buy again, then I will consider the other factors and decide if I should invest.

Most internet marketers I know have a love-hate relationship with Google since they are constantly trying to get their client’s websites ranked using the latest updates. But since the beginning, Google’s main goal and the purpose of the company has been to provide the most relevant results for the search term being entered in the search box. Every update they have made has been based on providing better and more relevant search results for those who use their search engine. Their updates are made based on in depth data analysis and research and I have to say, every update they have made has improved their search engine.

Considering this is the biggest change to their algorithm since 2001, I’m not surprised that the markets are now responding with a big jump in stock price. I do think that the results are better and while only time will really tell, after a month or two of results to analyze, it seems that this update has made a positive difference.

I will continue to monitor the Hummingbird update to make sure my client’s websites continue to rank well, but because I use long-term strategies that help the search engines know what my client’s websites are about, our rankings have remained high and presumably will continue to do so.

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