This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Google Walks Past $400

Updated from 9:35 a.m. EST

Google's (GOOG - Get Report) march on $400 is complete.

When last month's third-quarter earnings blowout prompted some analysts to predict the stock would top $400 , skeptics were quick to emerge. After all, Google shares already looked gaudy, fetching $303 apiece heading into the company's Oct. 20 financial report.

But now Google is up more than 350% since its public offering last year and the stock opened at $401.68 Thursday. Many investors clearly expect the stock to continue its upward trajectory. Volume in out-of-the-money Google calls is rising, indicating that people expect the stock to keep jumping.

Lately, the shares were at $402.13, up $3.98, or 1%.

Google has reached a point in its history where merely mentioning that it's considering adding a new service is enough to create a buzz. Newspapers are concerned about the impact that the company's Google Base service will have on their classified business. Publishers have filed suit to block Google's plans to scan books.

There are some kinks in the Google juggernaut. It hasn't been able to make any headway in markets beyond search, including e-mail and comparison shopping, and it continues to face heightened competition from rivals including Yahoo! (YHOO - Get Report) and Microsoft (MSFT - Get Report).

"It's warranted to be cautious," says Larry Haverty of Gabelli & Co., which owns a small position in Google among its $28 billion in assets under management. "They have attracted a lot of attention from competitors."

Even so, figuring out the Mountain View, Calif., company's growth prospects over the long term remains tricky.

"There is no question a lot of analysts think that Google is going to rule the world," said Darren Chervitz, director of research at Jacob Asset Management, which owns Google shares. But he cautions that "it is a business that is entirely dependent on advertising. It won't take much of a slowdown for people to question the multiple."

Chervitz, whose firm also owns shares of the Inc. (TSCM), the publisher of this Web site, doesn't believe Google's business is showing any signs of faltering. Even so, his apprehension highlights the challenge Google poses to investors who survived the Internet bubble of the late 1990s.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
GOOG $693.01 0.00%
MSFT $49.87 0.00%
YHOO $36.60 0.00%
AAPL $93.74 0.00%
FB $117.58 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs