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Google+ Makes Google Worth $20 Billion More

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Google+ Makes Google Worth $20 Billion More

Chris Hondros

Larry Page and Sergey Brin joined forces in 1998 to bring Google to life ... and the Web has not been the same since.

Wall Street has decided that Google+ is a success and added around $20 billion to Google's value, according to its stock prices.

So somewhere between the launch of Google+ on June 27 and July 7, stock price soared from $482.80 to $546.60, according to TechCrunch. (As of 9 a.m. Monday morning, the price is $529.91 a share.) That's a boost of $20.6 billion.

Not all news is good news, because investment banker Morgan Stanley decided to downgrade Google on Friday because it felt Google is laying out too much money  on Google+ without plans on how the tech giant will make a profit, according to the Associated Press.

To me, it's interesting how investment bankers are warning investors about an established tech company with a solid background, yet decided that Zynga, a company that creates social games on Facebook, should be valued at $20 billion. Wall Street makes money on trades and gambles, not steady companies with small but dependable growth. So while seeing that Wall Street views Google+ as a valuable commodity may be reassuring, it should not be the only measure of success.

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