Google Stock Price Heads For $900
Financial analysts continue to raise their target price for high-flying Google. Credit Suisse Group on Tuesday became the latest firm to push its valuation of the search giant closer to $1,000 per share, saying it expects Google to surpass $900 per share next year. According to Bloomberg data, Credit Suisse's valuation is the highest among the 37 brokerages that rate its stock. As of Wednesday morning, Google was trading at $647.85 per share, which means a jump to $900 would represent a 40 percent increase. Google's stock has risen 31 percent so far in 2007.
Analyst Heath Terry says Google's stock will be boosted by the continued shift of media spending toward the Internet. "Tremendous value will be created for Google shareholders as all advertising goes digital, including television, radio, and outdoor, and Google becomes the de facto 'operating system' for advertisers."
Terry also forecasts that Google's search business would one day swallow the entire market. "Over time, Google will continue to gain share until they have effectively reached 100 percent."