Prudential Raises Estimate On Google

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.

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