|
Apr 12
|
Google Stock Forecast : Google Stock PredictionForecast Comments Off
|
At $500 – 600 Google stock might seem expensive but if you look at Google fundamentals you may understand why 35 out of 38 Google analysts polled by Thomson Financial rate Google shares a Buy.
Google Stock Forecast : Google Stock prediction : Google stock outlook
One fundamental that makes a good case for Google stock to rise higher is data on internet advertising.
The nation’s top 100 advertisers direct just 5.5% of their total ad spending to the web, according to industry trade publication Advertising Age. Meanwhile, Internet advertising is expected to hit 9% of total ad spending by 2011, according to Jupiter Research, an industry research firm.
Paid search advertising, which is Google’s bread and butter, accounts for 40% of total ad spending on the Net and is the fastest growing category, helped by the fact that it’s both cost effective and highly scalable.
“Even at 40%, search has just barely scratched the surface,” Aggarwal says. “We think advertisers on a long-term basis are going to embrace search. Google, with the largest market share, is the biggest beneficiary of that growth.” Data Source: smartmoney.com article.
Although Google has been accused of being a one trick-pony that relies 99% on advertising, the above data shows Google core business of search advertising is solid and the company will continue on the path of higher revenues, higher profits that translates to a higher stock price.
Facebook : The elephant in the room
Facebook is growing fast and attracting advertisers but i don’t think Facebook is a threat to Google business. Google is good at search advertising while Facebook is good at display advertising.