Google Target: $2,000 or $100?
Posted on January 13, 2006
While there are many analysts forecasting Google to climb higher towards $600 or $700 (one even forecasts $2,000) another expert believes the path for Google is down to $100. Fortune reports that Henry Blodget, well-known in the 90s for forecasting a $400 Amazon, believes there is a scenario that could send Google to $100.
It's all worth remembering for two reasons. First, that kind of mania has taken hold of another stock -- Google. Last week, Piper Jaffray analyst Safa Rashtchy, one of the best known experts on the search industry, put a $600 price target on the stock, only to be topped two days later by Mark Stahlman at Caris & Co., who said that over the longer term Google would likely hit $2000. The stock, which had been trading at about $425, instantly shot up to near $475. It closed Thursday at $463.Blodget's blog can be found here and here is the entry he wrote about Google falling to $100. Google does have some competition to AdSense coming from Yahoo, Microsoft and start-ups. How Google manages to fend of competitors will probably decide whether Google's stock continues climbing or falls.Second, Henry Blodget himself has become one of Google's most vocal bears. Indeed, on Tuesday, readers of his blog, InternetOutsider, found the following next to a picture of a grizzly: "No one else is writing this piece, so it will have to be me. I should say upfront that I'm not predicting that this will happen (yet), and I'm certainly not making a recommendation. I'm just laying out a scenario that could kneecap Google and take its stock back to, say, $100 a share."
