Google says Big Bubbles, No Trouble.
Early stage VC's like Fred Wilson are finally buying google (which is kinda like a Hollywood actor or director paying retail to watch their film at the local mall UPDATE : actually it's like watching one of your competitors/friends films :); GOOG stock is up 19% this month; 44% of revenues are international (which suits my investment thesis re regional opportunity) and analysts are upgrading.
This is like when you used to watch AOL stock going up percentages each day on CNBC and Cramer, Faber, Maria etc would rant to buy buy (Cramer's current buy goog soundbite is pretty good2 : "Google “is the eight-ton gorilla in the room that is crushing the competition and is the stock every mutual fund will have to own by the end of the year.” Simply put, he says that Google is just doing everything right. "Get a share or two," he advised. "Get on the Google train where the next stop is $500. All aboard!") Internet Stock Blog also blurbs :
• Goldman Sachs analyst Anthony Noto reiterated a $525 year-end target, while setting a new 12-month target of $595.
• Citigroup analysts reiterated their “buy” rating and raised their target price from $550 to $600.
• Jefferies & Co. analysts reiterated their “buy” rating and raised their target price from $500 to $520.
• RBC Capital Markets analysts reiterated their "outperform" rating and raised their target price from $465 to $525.
• Prudential Financial analysts reiterated their “overweight” rating and raised their target price from $520 to $575.
• Lehman Brothers analysts reiterated their "overweight" rating and raised their target price from $530 to $560.
• UBS Analysts maintained their more conservative stance while reiterating their "neutral" rating and raising their target price from $450 to $500.
The new google stat I cant help but drop into conversations with Collins Street Bankers is that Google spent $332M on Research and Development in the last quarter. The Australian Online (Media) Industry (those driven by online advertising lets say) would be lucky to spend 2-5% of that number in aggregate. Which is worrying on one hand. (on the other it's not as it allows for startups to own that space although it can be more resource intensive R+D:)
I'm constantly told anyone that knows what machine learning is, and is any good at it (technically) isn't in Australia anymore. This issue is bigger than the gap between high net worth non-core angel tech investing and small size VC. Its more a people issue.
There's lots of money there people want to spend. But it's the engineering brain power that has either left the country, or braindead working on $800-$1500 a day dole cheques from the bumbling bureaucratic banks. The good news is I've seen more engineering driven smart startups or seeds of ideas in the last fortnight than all year (alot driven by Web Directions 06 ppl), so I think we'll see lots of small big websites that are engineering driven originated downunder in 2007. Anyway, bed time here.
Trivial Pursuit: Totally '80s: Sample question: What bubble gum brand was hyped by a Wild West gunslinger who noted "Big Bubbles, No Trouble?" Answer: Hubba Bubba.
This is like when you used to watch AOL stock going up percentages each day on CNBC and Cramer, Faber, Maria etc would rant to buy buy (Cramer's current buy goog soundbite is pretty good2 : "Google “is the eight-ton gorilla in the room that is crushing the competition and is the stock every mutual fund will have to own by the end of the year.” Simply put, he says that Google is just doing everything right. "Get a share or two," he advised. "Get on the Google train where the next stop is $500. All aboard!") Internet Stock Blog also blurbs :
• Goldman Sachs analyst Anthony Noto reiterated a $525 year-end target, while setting a new 12-month target of $595.
• Citigroup analysts reiterated their “buy” rating and raised their target price from $550 to $600.
• Jefferies & Co. analysts reiterated their “buy” rating and raised their target price from $500 to $520.
• RBC Capital Markets analysts reiterated their "outperform" rating and raised their target price from $465 to $525.
• Prudential Financial analysts reiterated their “overweight” rating and raised their target price from $520 to $575.
• Lehman Brothers analysts reiterated their "overweight" rating and raised their target price from $530 to $560.
• UBS Analysts maintained their more conservative stance while reiterating their "neutral" rating and raising their target price from $450 to $500.
The new google stat I cant help but drop into conversations with Collins Street Bankers is that Google spent $332M on Research and Development in the last quarter. The Australian Online (Media) Industry (those driven by online advertising lets say) would be lucky to spend 2-5% of that number in aggregate. Which is worrying on one hand. (on the other it's not as it allows for startups to own that space although it can be more resource intensive R+D:)
I'm constantly told anyone that knows what machine learning is, and is any good at it (technically) isn't in Australia anymore. This issue is bigger than the gap between high net worth non-core angel tech investing and small size VC. Its more a people issue.
There's lots of money there people want to spend. But it's the engineering brain power that has either left the country, or braindead working on $800-$1500 a day dole cheques from the bumbling bureaucratic banks. The good news is I've seen more engineering driven smart startups or seeds of ideas in the last fortnight than all year (alot driven by Web Directions 06 ppl), so I think we'll see lots of small big websites that are engineering driven originated downunder in 2007. Anyway, bed time here.
Trivial Pursuit: Totally '80s: Sample question: What bubble gum brand was hyped by a Wild West gunslinger who noted "Big Bubbles, No Trouble?" Answer: Hubba Bubba.
posted by redbarren at 12:30 AM
<< Home