The cheerleading for Google from the analysts at leading brokerage firms is starting to sound a lot like the days of the dot-com bubble, when some of the same analysts appeared on TV trumpeting ever higher prices for profitless Internet companies.
Google shares are running like the bulls in Pamplona at the moment. The stock, which went public at $85 per share in August, climbed another $14.97 yesterday to finish at $187.40. Google shares have soared about 23 percent over the past three trading days, driven by the company's admittedly outstanding quarterly financial report last week.
Google marked another milestone in its astronomical ascent Monday, passing Yahoo in market value. Google has a market value of $51.4 billion compared to $47.9 billion for Internet rival Yahoo.
Such an enormous increase in the value of a company over a few weeks recalls the day in December 1998 when Henry Blodget, then an analyst for Oppenheimer & Company, famously predicted that Amazon.com, then trading at $240, would soon rise to $400. It reached that target in three weeks.
There has to be some irrational exuberance at those prices. It's precisely like it was five years ago, it feels like the bubble all over again.
Roof Extensions - Traditional Deck
7 months ago
0 comments:
Post a Comment