As the stock market teeters with historic losses, edgy investors and global economy concerns Goldman Sachs upgraded Google, Inc. (NASDAQ: GOOG, GOOGL) to a Buy with a price target of $800. This would translate to 30% gains from the current stock price.
Goldman analyst Heather Bellini explained that the newly formed Alphabet operating structure will give Google greater transparency and the company intends to focus on cost control and greater profit margins. She also pointed to greater growth factors in the mobile arena and YouTube.
Just after noon today Google is up 3.37% at $601.88 a share. Google stock dropped nearly $80.00 per share, almost 12%, in the previous 4 trading sessions before the Goldman Sachs news.
Currently, most tech and internet stocks are showing gains including Apple (AAPL), Microsoft (MSFT), Facebook (FB) and IBM. Current losers in afternoon trading include Yahoo (YHOO) and Twitter (TWTR).
All eyes are on the last hour of trading for a possible repeat of Tuesday’s 500 point crash. Will the trading freeze system prevent another dramatic swing that some say are caused by automated high frequency trading platforms that overwhelm the markets with algorithm sell orders? We shall soon see.