Alphabet Jumps to Record High on Positive Pixel Phone Reviewsby
New smartphone receives mostly praise from product reviewers
Share price highest since Google’s initial public offering
Alphabet Inc. shares hit a record high on Tuesday after mostly positive reviews for its new Pixel phones, the first line of phones designed in-house by its Google unit.
The Mountain View, California-based company’s stock gained 2.5 percent to $826.85 at 2:43 p.m. in New York, after earlier reaching $828, the highest price since Aug. 19, 2004, when Google’s shares were first traded in the public markets.
The mostly positive reviews are a change for Google, a company that has occasionally pushed out glitch-ridden devices before they were ready for mainstream consumption. Google executive Rick Osterloh told Bloomberg News earlier this month that the company would continue to produce new hardware annually.
The Verge’s Walt Mossberg called the new phone “easily the best” Android phone he had ever tested, praising the device’s automated Assistant voice feature and camera system, but panning its battery life. TechCrunch’s Darrell Etherington said the Pixel’s camera is a “terrific photo and video experience,” but said Apple Inc.’s iPhone 7 still produces more accurate colors.
Youssef Squali, an analyst at Cantor Fitzgerald, attributed Alphabet’s share gain to the support for the Pixel and confidence after Netflix Inc.’s positive quarterly results on Monday.
“Part of it is the Pixel reviews, which have been more positive than I expected,” Squali said. “Partly it’s the Netflix effect. Great earnings. Google is reporting next week. There’s hope for a strong quarter from all internet companies.”