Google '$1000' Dream Fades as Stock Dips Below $850 (GOOG)
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In February Bernstein bestows Google (Nasdaq: GOOG) with its first $1000 price target. At the time, some called the price target a 'kiss of death' – a reference to pain investors felt watching Apple (Nasdaq: AAPL) stock decline after it received a number of $1000 price targets. Despite superstition, a number of others followed in Bernstein's footsteps and a total of 15 analysts said the stock would soon reach $1000. So far it hasn't happened.
Google stock peaked near $920 in mid July. Since then the stock has falling 8% and now trades below $850. The decline is a far cry from Apple's post-peak collapse of over 40%, but nonetheless the decline has clearly left many investors disappointed, and some might already be getting impatient.
Bulls argue that given growth in mobile search, Google $1000 is likely sooner rather than later. Bears complain about high TAC and argue that Google's profit margins are at risk.
Despite the debate, few are willing to short Google stock. Short interest is a paltry 1.4% and there is only one Sell rating. With this in mind, stock appreciation likely depends on Google's ability to keep impatient investors from fleeing. Since Google doesn't pay a dividend, investors want to see clear signs of growth at the search giant – something easier said than done in an increasingly competitive environment.
Google stock peaked near $920 in mid July. Since then the stock has falling 8% and now trades below $850. The decline is a far cry from Apple's post-peak collapse of over 40%, but nonetheless the decline has clearly left many investors disappointed, and some might already be getting impatient.
Bulls argue that given growth in mobile search, Google $1000 is likely sooner rather than later. Bears complain about high TAC and argue that Google's profit margins are at risk.
Despite the debate, few are willing to short Google stock. Short interest is a paltry 1.4% and there is only one Sell rating. With this in mind, stock appreciation likely depends on Google's ability to keep impatient investors from fleeing. Since Google doesn't pay a dividend, investors want to see clear signs of growth at the search giant – something easier said than done in an increasingly competitive environment.
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