It's Official: The Bubble is Back

Article Submitted by: Mkhan
Stocks - Options - Mutual Funds


Henry Blodget is calling for Google to go to $2000 a share.

 

Submitted: Oct 2, 2007    Views: 636    Comments: 3    Likes: 42   


After 2001, there are two things that I didn't expect to see so quickly.  First, I didn't expect to see Henry Blodget commenting on stocks.  If you will remember, he was the former Merrill Lynch analyst who publicly called for Amazon and other internet stocks to go to infinity, while privately speaking disparagingly about their true prospects.   Second, I didn't expect to see anyone ever make ridiculous projections calling for a 3 fold increase on a leading internet stock.

Both seem to have happened in one fell swoop today.  In this article, Blodget calls for Google to go to $2000.

I have written previously on this site about my deep fears in owning EMC at a time where Jim Cramer is pushing it to the moon.  I remain concerned about the fact that Cramer has a bad effect on stocks and I would always prefer to be trading against him that trading with him.

Unlike Cramer, I believe that Henry Blodget is actually a brilliant analyst and brilliant writer who was in the wrong place at the wrong time.  The fact that he stood up to Spitzer successfully indicates that he was clearly able to prove behind closed doors that he was unduly influenced by Merrill's top brass.

I love Google stock and it has worked magic for me, and  I prefer to see Blodget calling for it to go to $2000 than to see Cramer calling for it to go to $650.  Nevertheless, these kind of prognostications concern me - is there not too much exuberance now.  Isn't the combination of a Google call to such heights and the reemergence of Blodget at this moment just plain scary?




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Comments Received:

jsoc

I suspect that Blodgett is up to something. Surely, he knows that picking a crazy price target, ala QCOM $1000, like this will result in lots of media coverage- and probably some ridicule. Why would he want that? Maybe he is about to publish a tell all book.

Posted: Oct 2, 2007

Ruiz
(Unregistered)

2000 seems a bit extreme but I think Google has lots of room to go up. Blodgett gains nothing by picking a moderate number. He only gains by saying something extraorinary. If the stock even makes it to 1,200 he'll say - see, I told you it was going up. If it goes down everyone will forget, like they had already done with many of his past guesses.

Posted: Oct 3, 2007

JRubinstein
JRubinstein

Henry Blodget is very smart and was caught in the wrong place at the wrong time. I hope that he writes a tell-all book at some point. Kevin Landis from the Firsthand Funds, on the other hand, is an absolute idiot. I know that the bubble is back because the WSJ ran an article talking about how people are investing with Landis again.

Posted: Oct 15, 2007



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