Credit Suisse Puts Google Near $900
Google’s stock chart shows a drastic plunge taking place between November 7th and November 12th, but things have since leveled off, and Credit Suisse isn’t worried. An analyst at the firm has actually suggested that Google might hit $900 per share in the next year.
|Credit Suisse Puts Google Near $900|
Those who think this sounds unlikely might want to know that Google’s up about $27 for the day so far on the prediction alone. Those who are discussing the existence of a bubble might be interested in the same information, though, and the gain only puts Google at $653.
Let’s look beyond the hype to the actual analyst’s words, then. According to Jeff Kearns, Credit Suisse’s Heath Terry wrote, “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 later added, “Search is a natural monopoly business. Over time, Google will continue to gain share until they have effectively reached 100 percent.” Given the latest numbers from Hitwise (which put Google’s market share at 64.49 percent), this point is hard to argue, and the search engine’s absolute dominance in France makes it even more difficult to disagree.
If Google’s stock does hit $900 per share, that will represent a gain of approximately 38 percent over its current price.