Feeds

Analyst: Google to hit $630 a share in 07

Crazy times. Again.

Reducing security risks from open source software

A year after people wondered whether Wall St had taken leave of its senses by over-valuing Google, the analysts are back with more fantastic predictions.

Piper Jaffray's Safa Rashtchy has again pumped up his target price for Google stock, to $630 from $600 for 2007, while projecting earnings coming in at $16.59 a share.

Rashtchy is placing his faith in Google's ability to continue growing its online advertising revenue using the cross-pollination created by the Google's non-search related products such as maps and blogging tools.

According to Piper's analyst, non-search products create a "virtuous cycle of brand affinity" that increase use of the site and its core search engine.

What does Rashtchy base his predictions on? An "in-house survey of internet users."

While Google's shares are likely to continue moving upwards during 2007, and those who baulked at the $85 asking price when Google listed back in 2004 will continue to kick themselves for not buying then, it's worth taking a little time out.

First, it was in January 2006 when Rashtchy last raised his guidance from $445 to $600. According to no less an authority than Google's own financial charting site, the giant came in a little shy of the "high end", hitting a 52-week high of $513.

Missing Wall St expectations by as little as a penny usually prompts furrowed brows and searching questions. Google missed this analyst's prediction by $87.

At the time, Rashtchy said he "expected" new initiatives from Google would generate "meaningful revenue" by the end of 2006. Very shortly afterwards, later in January to be precise, Google launched its Video Marketplace, pushing shares up to $466.

As 2007 dawns and Google tears away from its second largest competitor, Yahoo!, in spectacular fashion, there's a new element Wall St analysts must factor into their predictions, which was lacking in 2006: Microsoft.

While Microsoft's online ads revenues are currently going "sideways" and its search service struggles to gain market share, it will surely be only a matter of time before the gravitational power of the Microsoft brand takes effect and begins to siphon business away from Google.

Next, if recent history has taught us anything about research from financial analysts, it's that the research should be handled very carefully. Jeffries & Co analyst Katherine Egbert's "independent checks" convinced her Oracle was close to launching its own Linux. What we got, instead, was Oracle's Red Hat support network.

Finally, experience tells us a Wall St office or brokerage floor is not at all representative of the IT market in general.®

Mobile application security vulnerability report

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.