Two Analysts Raise Google Concerns

After a year-plus of nearly continuous share price increases matched by equally lofty financial reports, a couple of stock market analysts think it's time to sell Google investments. One said sell, the other said sell too. Neither analyst noted in Jonathan Berr's Scott Kessler of Standard & Poor's maintained that firm's price target of $428 per share for Google, but sees storm clouds gathering on the horizon: "We think Google still faces notable risks, including a lack of revenue diversification, mounting competition and click fraud," he writes. Google's corporate masters do have diversification in their sights. Recently the search advertising company announced the although a noticeable impact on earnings won't happen for another year. Microsoft has June 2006 targeted for its MSN AdCenter launch, and the company has plenty of cash on hand to make AdCenter a loss leader should they decide to play for volume and erode Google's overall share of the contextual ad market. Email the author to your Bookmarks. Add to document.write("Del.icio.us") | Yahoo! My Web David Utter is a staff writer for Murdok covering technology and business.