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Forget Apple. Google’s Going to $1,000, Says Pro

Lawrence Lewitinn
Talking Numbers
Forget Apple. Google’s Going to $1,000, Says Pro

Google is at an all-time high as it breaks through the $900 level. That leaves the question: Will it suffer the same fate as Apple or will it hit $1,000?

It’s official: Google has replaced Apple as America’s favorite stock. Shares of the internet giant have crossed the $900 per share threshold. The online giant is up nearly 28% year-to-date.

This comes as Google announces today that it will launch its own online music-streaming service in an effort compete with Spotify, the Swedish music upstart that has over 20 million users. According to reports, the company has inked deals with music major labels such as Sony, Warner, and Universal in anticipation of the launch.

The annual Google developers’ conference is being held today and that’s helping to generate excitement in the stock. The event is the Lollapalooza of Google-geekdom, where the tech giant shows off what innovations its teams have been working.

“I think we’re in the final stages of a speculative blow-off top,” says Richard Ross, Global Technical Strategist with Auerbach Grayson and Talking Numbers contributor. Looking at a long-term chart, Ross sees a well-defined upwards trend line beginning in the middle of 2012. Every time the stock touched the trend line, it has moved higher afterwards.

“I think we have another 10% to 12%. That gets us comfortably to that $1,000 level,” says Ross. “I’d be a buyer of Google right here.”

Enis Taner, Global Macro Editor at RiskReversal.com and also a Talking Numbers contributor, is cautious about investing in Google for the short-run. However, he’s a long-run bull. For him, Google is a tech company, not an Internet company. And, unlike Apple, Google’s strength isn’t in hardware.

The company already has a streaming service that offers a good reason for the company to be a worthwhile long-term investment, Taner believes. And that reason is its stronghold in advertising on streaming video. “I think the new advertising frontier is in video and YouTube is in the forefront of that,” says Taner.

“YouTube is the gem of Google’s online business but doesn’t get enough recognition.”