Google Inc.’s stock price sailed past $600 for the first time Monday, extending a monthlong rally propelled by the lofty expectations surrounding the Internet search leader’s upcoming third-quarter earnings report, espected to be released on Oct 18.
The Mountain View-based company’s shares traded as high as $610.26 before slipping back to $609.62, a gain of $15.57, or 2.6 percent. It marked the sixth time in the past 12 trading sessions that the stock has reached a new peak, indicating investors are confident Google’s third-quarter profit will be impressive.
The shares have increased more than sevenfold from their initial public offering price of $85, bringing the nine-year-old company’s market value to $190 billion and possibly on its way to become a mature business that might attracts the attention of investors such as Warren Buffett. It took 10 1/2 months for Google’s stock to leap from $500 to $600 and more than a year for the journey from $400 to $500.
Analysts began predicting Google’s stock would reach $600 at the start of 2006 when the shares were still hovering around $420. Some analysts already are predicting Google’s stock will hit $700 within the next year, but the average target price for the stock is $614.64 among analysts polled by Thomson Financial. Google Inc. founders Larry Page and Sergey Brin look set to climb the ladder of Forbes Richest Americans list from their current ranking of number 5 now. Already hundreds of other Google employees are millionaires.
Analysts, on average, are expecting the company’s earnings to rise by more than 40 percent to $3.75 per share, excluding expenses for employee stock compensation, according to Thomson Financial.
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October 9th, 2007 by financetwitter
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Comments
Do you think that Google will keep the momentum going to top $700 next year? I got linked to you from NewsVisual ( http://www.newsvisual.com/newsvisual/2007/10/google.html ), and they also seem pretty optimistic about 2008 for the company, based on their maps. Is this is a realistic expectation?
yes dant … it’s a matter of time before google breaches the $700 level again … next year? why not considering jim cramer was predicting even higher level for google …
the fact is investors are looking for a champ in tech and it seems google is the best candidate … forget about yahoo and microsoft as both of them were given tons of time but still are not able to deliver the result …
google is here to stay … that’s for sure …
cheers …
yes dant … it’s a matter of time before google breaches the $700 level again … next year? why not considering jim cramer was predicting even higher level for google …the fact is investors are looking for a champ in tech and it seems google is the best candidate … forget about yahoo and microsoft as both of them were given tons of time but still are not able to deliver the result …google is here to stay … that’s for sure …cheers …
Do you think that Google will keep the momentum going to top $700 next year? I got linked to you from NewsVisual ( http://www.newsvisual.com/newsvisual/2007/10/google.html ), and they also seem pretty optimistic about 2008 for the company, based on their maps. Is this is a realistic expectation?