What I always dreamed of may turn out to reality in near future. I’m a strong beliver of EPIC 2014. The fortunes have predicted the downfall of all the major IT companies including The Giant Micro$oft in front of Google. The present market share values are clearly reflecting the rise of another super power. Google floated its share as $85 at Aug. 19, 2004. Many investors and IT analysts under estimated its power now the present share value multiplied five folds to $423.48 per share, giving it a $125 billion market capitalization. It already surpassed many top branded ventures. Its becoming the nightmare of Wall mart and Micro$oft. Cisco Systems, which has a $107.4 billion cap, Intel around $161.9 billion cap and is it so far-fetched to imagine Google’s cap one day surpassing even Microsoft and its $295.4 billion market cap. Analysts predicted that the firm’s price target on Google from $430 to $500 billion within 12 months.
Analysts who are raising the price target for Google’s shares over the next six to 12 months are basing their forecasts mostly on what’s called the forward price-to-earnings ratio, or forward P/E. That’s the price of a stock divided by the analyst’s forecast for next year’s earnings. The P/E indicates how much investors are paying for a company’s earnings power. The higher the P/E, the more investors are paying and, it’s assumed, the bigger the risk. Google is now trading at 45 to 46 times 2006 earnings expectations, compared with eBay at about 45 times 2006 earnings expectations and Amazon at about 40 times, analysts said. I hope one day the prophecy might be true!