Can Google Break the $400 Level? Raise the Roof: GOOG Unstoppable
We predict that $400 will be no worthy opponent for Google, which hit yet another 52 week high today.Our latest number crunching all-nighter sees Google (GOOG) earning up to $9 a share in 2006.
Google shares are up to $396 since we placed a table pounding buy (and $500 price target) on the stock:
The online advertising space is growing at the tune of 30% Investors are paying multiples as high as Googles for companies with slower growth. What's more important for investors to look at is not the dollar amount of Google's stock price but what Google's valuation is relative to its peers. And on that basis, Google still looks reasonably attractive, if not dirt cheap. GOOG looks to be the company that deserves the premium right now. It has reported stronger gains in sales and earnings than Yahoo! since Google has more exposure to the online advertising market.Google bears (yes, they exist) opine that the $400 level is a ceiling even Google will have a tough time breaking.
We don't know what they're smoking, but we'd sure like to know.
Google will break $400 this week and flirt with $500 before we ring in the New Year.
As long as we are on the topic of barriers/psychological ceilings, pay close attention to Schwab (SCH) and Genentech (DNA), both on our buy list.
We see SCH and DNA zipping past the $20 and $100 (respectively) levels sooner rather than later.
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