Google's acquisition of Waze may be part of what drives the stock to $1,000 per share, say analysts. Are they right?
Google’s acquisition of Waze for $1 billion is a lot of money.
What else is a lot of money? Google’s $50 billion in cash and equal amount in revenue in 2012.
Waze had many companies calling on its offices in Tel Aviv but, ultimately, decided Google was its bashert.
Though rumored to have been pursuing Waze, Apple’s Tim Cook told the All Things Digital D13 Conference last month that his company “did not make a bid for Waze”. Apple faced a map flap last year when critics and users alike derided its iOS 6 mobile map app.
Some analysts think Google’s Waze purchase not only knocked out Apple, it also kept Facebook from acquiring the social mapping site, too. “The acquisition keeps Waze out of the hands of Facebook and Apple,” wrote Kerry Rice, Senior Equity Analyst at Needham & Company. “Given the social aspect of the platform, we believe Facebook was the most serious candidate suitor for the company.”
Rice also raised his price target for the company to $1,000 from $900.
Is Google really going higher from here? We posed this question to Talking Numbers contributors Steve Cortes, Founder of Veracruz TJM, and Richard Ross, Global Technical Strategist at Auerbach Grayson.
To hear analyses on Google by Cortes and Ross, watch the video above.
Be sure to visit Talking Numbers on Friday as we interview the Commodities King, Dennis Gartman, on how he’s trading the gold market.
NEW! Talking Numbers Technicals Tutorials here:http://finance.yahoo.com/video/playlist/talking-numbers/
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