Thursday, June 09, 2005
Net Stocks: Online ads on track to top $11 billion in 2005 - Internet Services - Internet - Company Announcements - General:
"Google gets another $330 price target
By Bambi Francisco, MarketWatch
SAN FRANCISCO (MarketWatch) -- If online advertising revenue continues to grow as quickly as it did in the first quarter, the industry could see advertising sales above $11 billion this year.Online advertising sales grew by 26% to $2.8 billion in the first quarter, according to the Internet Advertising Bureau and PricewaterhouseCoopers. That's 4.3% above fourth-quarter advertising sales, and the ninth straight quarterly gain.
As online ad revenue shows no sign of abating, investors continue to warm up to online advertising companies.
EBay (EBAY: news, chart, profile) gained 2% to $38.58 in early trading Monday. The online marketplace operator can participate in the upside of online advertising, now that it's buying Shopping.com (SHOP: news, chart, profile) , a leading comparison-shopping site.
Analysts also expect eBay to beat second-quarter estimates when it reports next month.
'In the short term, the current quarter [for eBay] is looking better,' said David Edwards, an analyst at American Technology Research, referring to improvements in the U.S. and German markets. Listings are tracking 4% to 5% above his estimates. And, even if eBay keeps its outlook flat or unchanged, that won't be a negative, he predicted.
Edwards raised his price target on eBay to $50 last week.
Watch interview with Edwards
Edwards also likes eBay's acquisition of Shopping.com as it gives eBay sellers another platform for their wares, especially in-season products. A lot of sellers that have their own Web sites can sell their in-season products on Shopping.com while selling discounted or liquidated items on eBay.
Yahoo (YHOO: news, chart, profile) rose just over 0.5% while Google (GOOG: news, chart, profile) gained just over 1%.
Google sales could hit $865 million in the second quarter, with international markets rising faster than affiliate partner sales, according to Jordan Rohan, an analyst at RBC Capital.
That sales figure is above the current consensus of $831 million.
Rohan raised his price target to $330 from $280. He believes that cash flow will grow by 8% to $590 million, well above the consensus expectations of $551 million, he noted. Rohan also introduced an earnings estimate for 2007 of $9.40 per share.
Over the last six weeks Google shares have increased by about 7% a week, or 44% altogether. On Friday, UBS became the second bank to establish a $350 target, but the first to establish a 2007 per-share outlook. CSFB slapped a $350 price target on Google earlier this week. UBS analyst Benjamin Schachter predicts Google can earn $9.02 per share in 2007."
"Google gets another $330 price target
By Bambi Francisco, MarketWatch
SAN FRANCISCO (MarketWatch) -- If online advertising revenue continues to grow as quickly as it did in the first quarter, the industry could see advertising sales above $11 billion this year.Online advertising sales grew by 26% to $2.8 billion in the first quarter, according to the Internet Advertising Bureau and PricewaterhouseCoopers. That's 4.3% above fourth-quarter advertising sales, and the ninth straight quarterly gain.
As online ad revenue shows no sign of abating, investors continue to warm up to online advertising companies.
EBay (EBAY: news, chart, profile) gained 2% to $38.58 in early trading Monday. The online marketplace operator can participate in the upside of online advertising, now that it's buying Shopping.com (SHOP: news, chart, profile) , a leading comparison-shopping site.
Analysts also expect eBay to beat second-quarter estimates when it reports next month.
'In the short term, the current quarter [for eBay] is looking better,' said David Edwards, an analyst at American Technology Research, referring to improvements in the U.S. and German markets. Listings are tracking 4% to 5% above his estimates. And, even if eBay keeps its outlook flat or unchanged, that won't be a negative, he predicted.
Edwards raised his price target on eBay to $50 last week.
Watch interview with Edwards
Edwards also likes eBay's acquisition of Shopping.com as it gives eBay sellers another platform for their wares, especially in-season products. A lot of sellers that have their own Web sites can sell their in-season products on Shopping.com while selling discounted or liquidated items on eBay.
Yahoo (YHOO: news, chart, profile) rose just over 0.5% while Google (GOOG: news, chart, profile) gained just over 1%.
Google sales could hit $865 million in the second quarter, with international markets rising faster than affiliate partner sales, according to Jordan Rohan, an analyst at RBC Capital.
That sales figure is above the current consensus of $831 million.
Rohan raised his price target to $330 from $280. He believes that cash flow will grow by 8% to $590 million, well above the consensus expectations of $551 million, he noted. Rohan also introduced an earnings estimate for 2007 of $9.40 per share.
Over the last six weeks Google shares have increased by about 7% a week, or 44% altogether. On Friday, UBS became the second bank to establish a $350 target, but the first to establish a 2007 per-share outlook. CSFB slapped a $350 price target on Google earlier this week. UBS analyst Benjamin Schachter predicts Google can earn $9.02 per share in 2007."
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