Google shares ‘set to reach $900’
Google shares are set to reach $900, boosted by Credit Suisse, which has raised its target price from $800 to $900 due to anticipated growth over the coming five years in online advertising.
Google’s shares rose by more than five per cent on the news, eventually settling at three per cent higher ($645) on the Nasdaq.
Should the search engine’s takeover of internet advertising firm DoubleClick be finalised, Google will be able to consolidate its already strong grip on the online advertising market. Advertising on web-enabled mobile phones is set to further boost the company’s cofers.
Credit Suisse analyst Heath Terry told Reuters: “We believe that search is a natural monopoly business and expect that over time Google will continue to gain share until they have effectively reached 100 per cent.”
He believes that Google’s search business can grow at the astonishing rate of 38 per cent a year over the next five years.
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