Alphabet Inc (GOOG)

[SeriousMoney]

Google Shares Push Toward $500 Again
Thursday January 11, 10:30 am ET
Google Shares Push Toward the $500 Mark As Analyst Sees Stronger-Than-Expected 4Q

NEW YORK (AP) -- Shares of Google Inc. headed north toward the $500 mark Thursday morning, after an analyst raised estimates on expectations for a strong fourth quarter.

The Mountain View, Calif.-based company's stock added $9.38, just under 2 percent, to $498.79 in morning trading on the Nasdaq Stock Market. Shares have retreated from a 52-week high of $513 in November.

In a research note, Goldman Sachs analyst Anthony Noto encouraged investors to buy shares of Google.

"Several factors could unfold over the coming months to unlock the value we see in Google shares," he wrote. Noto forecast "strong fourth-quarter 2006 results due to a solid holiday season that likely benefited from continued advertiser demand, seasonal strength in traffic, and recent product launches (including Checkout)," the company's online payment system.

The analyst also looked ahead to benefits from soon-to-launch partnerships with eBay Inc. and News Corp.'s MySpace, and ad-revenue growth from video and display formats, pay per call, radio, print and television.

Noto further wrote that he expects a boost from the launch of a premium, add-free version of Google's Apps for Your Domain, which will sell the e-mail, Web building and office software package to businesses.

Noto reiterated his "Buy" rating on the stock and said upcoming catalysts "could render our $595 price target conservative."

He raised estimates for the fourth quarter to a profit of $2.90 per share on $2.19 billion in revenue, from his earlier forecast of a profit of $2.81 per share on $2.15 billion in revenue.

http://biz.yahoo.com/ap/070111/google_mover.html?.v=1