Google’s share price takes another hike following an inspirational announcement made by the infamous Canaccord Genuity Inc. Analysts of this firm has decided to set the price target of Google to $1400.
As everyone knows, influential stock market brokers can make or break a stock. So, was it just another speculative move made by the big Wall Street wolf? The facts state otherwise though. Google has really been wise in terms of strategic decision making. With a good earning number in its basket, Google is now ready to concentrate solely on its advertisement business.
Why Did Canaccord Genuity Group Inc. Decide to Raise Price Target for Google?
If one wants to know what made this broker house announce such an inspiring price tag, suggestion would be taking a broad look at the recent decisions taken by the company and their impact. Apart from posting a 22 percent accelerated revenue growth, the company also made a great move to improve its long term development.
Google Inspires Investors With Its Plan for Future
The hike in the Google’s share price was not because of its earnings result. It was because of company’s thought on its future plan. Google knew what to add or what to cut out of its huge empire. This time, it’s going to be Motorola.
Google is Planning to Sell Motorola to Lenovo
Here are some quick facts for people who are thinking how divestment of this kind can make the stock market’s spirit so high:
- Google made the divestment announcement in January. The search engine giant acquired Motorola in 2012. Reports from sources say that despite pouring a lot of money on its expensive patent rights, Google could not fetch any encouraging earnings from the mobile handset business.
- As the handsets of Motorola didn’t do well in the market and sells figure wasn’t satisfactory, the company continued to lose lots of money and see cost cutting.
- Even after trying hard to do something meaningful with this business division, when Google found no reason to feel optimistic about it, the company decided to sell it to Lenovo.
- The company is not losing anything because of the divestment decision; instead, it will be able to reduce the unnecessary burden of operation cost.
- Google fans see it as a good up-turn as the company will now be able to concentrate more on its advertising business, which is what ultimately gives this company its major revenues.
Apart from this, most brokers seem to agree on the fact that Google’s share deserves the encouraging price valuation. Big names like City Investment Research, Goldman Sachs and RBC Capital Market didn’t hesitate to set a higher price target for Google. This was why the stock market seemed to be highly optimistic the company and gave its share price an additional push. Investors who’re thinking of long term investment shouldn’t hold themselves back as Google shares have every reason to bounce back soon in the future.