Updated: This is like watching someone inflate a balloon beyond anything that seems rational and waiting for it to pop. Propelled by a CSFB analyst’s report that the stock has “further to go” and a price target hike to $350 from $275, Google jumped $12.05 to $289.32 midday and closed at a record $287.70 after reaching as high as $292.89. By comparison, search rival Yahoo was up 88 cents to $38.08 midday and closed at $38.42. From the note via Reuters: “While there will certainly be plenty of volatility in the stock price … we believe shares have further to go given the momentum in the company’s core advertising business, the growing impact of new business like Gmail, Froogle and Local, and a valuation that, relative to the company’s growth rate, is far from stretched.”
MarketWatch: CSFB’s Heath Terry isn’t the only analyst predicting $300 and beyond for Google.
Some analysts are more skeptical. Janco Partners analyst Martin Pyykkonen told AP: “Google’s entire business today is based on you and me and millions of others clicking on those right-of-the-page ads. Putting all your eggs in one basket is great when things are rocking, but it’s risky.”
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