Every day, there is something new in the news about Google, Inc. (NASDAQ: GOOG). The company has spent the better part of 2006 and all of 2007 preparing an "Act II" to ensure the constantly growing revenue heap if receives from text-based internet advertising doesn't lead to the "all eggs in one basket" scenario that has worried many shrewd industry watchers and investors for years. While Google's revenue from internet advertising is still growing every quarter by leaps and bounds, the company needs to share the love into other areas. Well, the revenue love, anyway.Google has signed more high-profile advertising partnerships this year and just recently released details on what I consider to be one of its most ambitious projects to date -- the mobile phone operating system. Google, always the one to wrestle tight control from the corporate shaft-meisters and give it to the people, wants the mobile phone to be an open standard usable by any customer on any device.
What freedom lies ahead, eh? It's scary for wireless companies, but exciting for customers and for Google's budding aspirations in the mobile advertising arena. With that said, the company's shares recently reached for $750 per share but have gone back to sub-$670 levels as of this morning.
Ryan Jacob of the Jacob Internet Fund thinks Google's shares are poised to climb up to the $1,000 level with the momentum and reach the company has at this point. While the financial fundamentals make Google's current valuation seem almost laughable, that's never stopped the share prices from some companies from reaching astronomical levels before.
Hype is a real word and reach into the future sometimes, while being viewed as skeptical, creates that "irrational exuberance" situation detailed from Alan Greenspan all those years ago. With Google, is the company's share price really "irrational" or would this be one of a handful of companies that really does justify its share price based on so many future unknowns? Will you ride it to the $1,000 level or will you end up falling off as shares level out?
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Reader Comments (Page 1 of 1)
11-12-2007 @ 4:28PM
John said...
I sold about 10% of my shares on the way down and hope to reinvest when I think we are near a bottom. Google will definitely hit $1000.
11-12-2007 @ 4:32PM
Gumby said...
Google appears to be crawling with more talented techies than at Microsoft. Only time will tell. Who knows, Google might end up replacing Windows and Office with its own with new names. Can you see Windows and Office ruling the roost for decades and decades ahead? I think not. Google is the most likely to push Microsoft off its pedestal with its new ideas and technologies. If not, who else can do that? Any names? Yes, entrencments last a long time like IBM . IBM will crack up someday. Microsoft will be next. Oracle will, too. Technology keep on changing and old technology cant be upgraded or updated indefinitely.