At $486/oz gold still has the lead but for how long?
Google worth $400/share? I must confess, i really like Google the company but i thought the stock was overpriced at the IPO and crazy at $150... So much for my credibility.
Google at $400: Is It on Merit Or Just a Mania?
November 18, 2005
Google the word "mania," and one might almost expect to get a link to, well, Google Inc.
Shares of the Mountain View, Calif., online search company marched past $400 a share yesterday, finishing at $403.45, up $5.30, or 1.3%, on the Nasdaq Stock Market.
The stock was born, as an initial public offering, in August 2004 at $85 a share. But with the gains since then, the seven-year-old company now has a market value of more than $112 billion, making it larger than Coca-Cola Co., Cisco Systems Inc. and Time Warner Inc. There are many in the marketplace who think the company's shares have room to grow. Several analysts increased their price targets to $450 after Google reported stellar third-quarter results last month.
All the optimism, however, like the dot-com craze of the late 1990s, is likely coming at the expense of future returns for current holders of Google's shares. Critics wonder how the company can keep growing fast enough to earn that hefty price tag. Their argument in a nutshell: Google might be a great company, but it will be tough for it to be a great stock.
"We love the company," says Rick Summer, a stock analyst who covers the stock for Chicago researcher Morningstar Inc. "But for me to come up with $400 as a fair value for the company, I'd be hard-pressed."
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