Following the fuss over Google being valued higher than Time Warner by the market-cap measure, Silicon.com offers a solidly cynical look at the idea of even calling Google a “media company.” Their view: “Since the bubble burst, no one wants to talk about internet stocks. A Google gets lumped in with real media companies on Wall Street. It was probably a tougher call than, say, Yahoo!, which for years did content through a portal, supported by advertising.” But, they acknowledge, “Google overtaking Time Warner is a milestone, of sorts. In the long term its ad revenue overtaking that of a TW or News Corp would — will? — be even more significant.”
Update: The Journal offers an analysis of analysts’ thinking in “Anatomy of a Google Price Target.” Mark Stahlman, analyst, Caris & Co.: “Little is known about Google’s investments, plans or infrastructure. That’s an X factor that at the moment is working to the advantage of the stock.”
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