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Google 4000? Why Not?

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All right folks its official: silly times are back…. a few weeks ago some put a $575 price target on Google, and I blanched. Then yet another new price target from yet another analyst. Google $600. Today Mark Stahlman, an analyst at Carris & Co. comes and puts a price target of a whopping $2000 a share (said loudly in the voice mimicking Dr. Evil from Austin Powers.) Crazy? Absolutely! Paul Kedrosky is going out on a limb and saying so what’s another $2000 among friends and wonders if $4000-a-share for Google is a possibility. It is all silly and dangerous! Why? Just read this accompanying story from The Wall Street Journal.

[Google vice president Marissa] Mayer said the impetus for Google Pack was the frustration of Google’s two co-founders, Larry Page and Sergey Brin, with installing basic software on new personal computers they purchased.

Blimey…. is that a reason for introducing a product? Bizzare… don’t you think. All Google punters are going get their shins kicked….. hard.

14 Responses to “Google 4000? Why Not?”

  1. There is no reason why a product cannot be successful simply because company founders reckon they would like to buy it themselves: it’s worked fairly well for Steve Jobs at Apple.

    However, I agree that Google’s founders might have to try a bit harder than a software bundle to up the numbers – and the share price – by any significant amount. That is unless we just slipped back 10 years time and everyone forgot to tell me it’s 1996 all over again.

  2. Sure $2000 or whatever, but what is the rational behind arriving at that figure ? The only one I can think of is $20 EPS which is achievable if they grow at 100% over the next two years.