more on Forecast for Google Put at $600 a Share - New York Times

[David Farber <dave () farber net>]

Begin forwarded message:

From: Barry Ritholtz <ritholtz () optonline net>
Date: January 4, 2006 7:11:51 AM EST
To: dave () farber net
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
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
The Big Picture: Macro perspectives on the Capital Markets, Economy,  
and Geopolitics
http://bigpicture.typepad.com/comments








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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