Google to $2K a Share or Infinity and Beyond?

How much higher can Google Inc. (NASDAQ:GOOG) shares go?  Henry Blodget takes on the question and ponders if the company can reach $2,000 a share by 2018.

(BusinessInsider.com) In the fall of 2007, when Google stock was all the rage, we outlined a scenario in which the stock could go to $2,000 over 10 years.

At the time, this seemed startling.  Considering the time horizon, however, it was actually pretty mundane.

Basically, going to $2,000 from $700 over 10 years meant that Google's stock would have to appreciate at an average annual rate of about 6% a year.  This didn't come close to offsetting the risk of owning it. (In those days, you could get almost that much owning a US Treasury bond.)

When we laid out the $2,000 scenario, therefore, we suggested that anyone who did NOT think Google's stock could go to $2,000 over 10 years should sell it immediately.  We also said we hoped that the stock might plunge to, say, $200, in the interim, so that people who bought it "for the long term" could actually get a compelling return.

Well, now we're about a quarter of the way through that 10-year time horizon.  So it's worth checking in on where things stand.

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SOURCE: http://www.businessinsider.com/blodget-google-2000