[IP] more on Forecast for Google Put at $600 a Share - New York Times
Begin forwarded message:
From: Barry Ritholtz <ritholtz@xxxxxxxxxxxxx>
Date: January 4, 2006 7:11:51 AM EST
To: dave@xxxxxxxxxx
Subject: Re: [IP] Summarized -- Forecast for Google Put at $600 a
Share - New York Times
Dave,
Don't be impressed by the big share price numbers; If GOOG split
their stock 10 for 1, would a $60 target for a $43 stock sound that
mad? Probably not.
Be more impressed with their market capitalization -- over $128B.
They are within a stone's throw of Intel's $154B cap.
Compare GOOG to other tech firms -- they are bigger than the market
caps for Cisco ($107B), Apple ($63B) eBay ($62B), Yahoo ($58B)
Amazon is tiny by comparison -- under $20B.
Barry L. Ritholtz
Ritholtz Capital Partners
230 Park Avenue, 10th floor
New York, NY 10017
212-551-1765
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On Jan 4, 2006, at 6:59 AM, David Farber wrote:
http://www.nytimes.com/2006/01/04/business/04google.html
By REUTERS The investment firm Piper Jaffray raised its price
target on shares of the Internet search provider Google yesterday
to $600 from $445, a 35 percent increase.
The new one-year target is the highest put forth by the 24 brokers
with model prices on the stock, according to Reuters Estimates, a
division of Reuters that compiles analysts' earnings estimates.
A Piper Internet analyst, Safa Rashtchy, projected that Google
would continue to generate strong, double-digit sales and earnings
growth through 2007 and gain market share as well.
Google is the leading Web search provider in the United States,
reaping virtually all its revenue from advertising.... The company
now offers a variety of free Web services like maps, directions and
e-mail.
"While the stock may have its ups and downs throughout the year, we
believe it will reach $600 by the end of 2006 and we prefer to have
one 12-month price target rather than raise it every quarter," Mr.
Rashtchy said in a client note.
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