Feeds

Analyst: Google to hit $630 a share in 07

Crazy times. Again.

The next step in data security

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.®

Security for virtualized datacentres

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Why Oracle CEO Larry Ellison had to go ... Except he hasn't
Silicon Valley's veteran seadog in piratical Putin impression
Big Content Australia just blew a big hole in its credibility
AHEDA's research on average content prices did not expose methodology, so appears less than rigourous
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.