Google Hits New High on Analyst Comments, Salesforce Deal
Shares of Google reached an all-time record in intraday trading on Tuesday following positive comments from a handful of analysts.
Stifel Nicolaus raised the price target on the stock to $620 from $585 and said the search advertising giant's recent deals, including the partnership with Salesforce.com, the acquisition of FeedBurner and a video alliance with Hearst-Argyle could "change the landscape" of e-commerce, search, and software.
"Google is, by far, our best large-cap idea," said analyst Scott Devitt, in a client note Tuesday. "We continue to believe many of Google's initiatives will be 'winner take all' over the long-term."
Google shares touched a new intraday high of $514.66, surpassing a previous intraday high of $513.00 set on Jan. 16. The stock's record closing high is $509.65 set on Nov. 21.
Earlier today, Salesforce.com said it formed an alliance with Google to make Internet-based marketing software which will integrate Google AdWords. Terms of the deal were not discussed.
“We believe in the end of software,” Marc Benioff, SalesForce.com’s chairman and CEO said on CNBC. “We found a natural partner in Google who believes in the same thing. We’re able to combine our two platforms to create a greater offering for customers who want to automate their businesses and at the same time take advantage of all this exciting new Internet search and advertising technology from Google.”
Goldman Sachs analyst Anthony Noto said in a client report today he was positive on recent moves such as the launch of Google Audio and the deal with Glam Media and maintained a "buy" rating on the stock.
Noto said the deals are likely to widen the company's share advertising share and drive future sales.
Susquehanna Financial said Google was building momentum in video and believes the company will see video-related ad sales increase to $300 million in 2008, up from an estimated $72 million in 2007.