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Prudential Raises Estimate On Google

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Considering that the market is having a hangover after overdosing on exhuberance on Google, Prudential is taking the gutsy move of putting confidence back into Google, raising their 2006 estimate on the company.

BuyGoogle has this quote:

Based on continued strength in the fourth quarter, particularly advertising growth on Google’s own web sites, we are raising our forward estimates. We now expect Google to earn $9.31 per share in full-year 2006 (up from $8.81), and we are introducing our full-year 2007 estimate of $13.56.

BG (as opposed to GB) says that the market initially overreacted to the tax-rate numbers, and Wednesday’s trading reflects more rational trading. After falling to $389 in awful after hours trading, a market that understood that Google’s earnings beat their estimates, just not after the tax rate, pushed the stock back up to $401.78.

I’d like to say that this whole experience has likely put traders into a more cautious mood regarding trading Google, but we all know the truth: they’re more hysterical than high school girls around an American Idol contestant.

Nathan Weinberg writes the popular InsideGoogle blog, offering the latest news and insights about Google and search engines.

Visit the InsideGoogle blog.

Prudential Raises Estimate On Google
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