Google soars
As analysts revise their price targets higher for Google shares, purchasers of Google stock continue to make its price soar closing today at $287.90 (after going public at what seems like a steal: $85!). According to this San Francisco Chronicle story which quotes an analyst who's argument makes sense when comparing Google to Yahoo! and eBay...but I'd be interested in comparisons to other companies not in the Yahoo-eBay-Google realm, since maybe that sector is overpriced?
Heath Terry, an analyst for Credit Suisse First Boston, raised his 12- month price target to $350 from $275 after Google's stock exceeded his previous prediction.
...Google's shares are trading at 42 times Terry's estimated 2006 earnings for the company. In contrast, online portal Yahoo is trading at 55 times its estimated 2006 earnings while Internet auctioneer eBay is trading at 37 times its estimated 2006 earnings, Terry said.