Google Inc (NASDAQ:GOOG) shares hit fresh all-time highs this week, busting through the $800 barrier along the way.
Some analysts thinks that things will get even better for the dot-com bellwether. Bernstein Research analyst Carlos Kirjner and CLSA Asia-Pacific Markets analyst James Lee are raising their price targets on Google Inc (NASDAQ:GOOG) shares to $1,000.
It’s a big number, even if only represents a 25% pop from here to get there.
Well, what if Big G isn’t the next company to break into four digits? Don’t get me wrong. I’m a big fan of Google. It’s the undisputed global champ when it comes to online advertising. As big as Google Inc (NASDAQ:GOOG) may be, it’s still growing at an astounding clip. Revenue soared 36% in its latest quarter!
Sure, a good chunk of that came from the Motorola Mobility acquisition, but even if you back that out, the online titan still grew its revenue 22% during the holiday quarter.
However, there are also plenty of other companies trading in the triple digits that may have their eyes set on the $1,000 finish line. Let’s look at a few that may — if things go right — beat Google Inc (NASDAQ:GOOG) to 1k.
Apple Inc. (NASDAQ:AAPL) — $448.85
If analysts scrambling to slap four-figure price targets on Google sounds familiar, it’s because a couple of Wall Street pros were doing the same thing to Apple when it was topping $700 late last year.
The good times didn’t last. Apple has come through with a few disappointing quarters, and the fear these days is that Google’s Android is eating Apple’s lunch.
Apple’s future will be challenging, especially as it tries to make its high-priced products more accessible to mainstream audiences worldwide. The market has marked down the shares as a result of declining margins and slowing growth, but the market can’t forget that Apple is an innovator. The iPad and iPhone — two product lines that account for the lion’s share of Apple’s revenue and profitability these days — didn’t even exist six years ago. When Apple disrupts again, and it will, the market will reward the stakeholders.
NVR, Inc. (NYSE:NVR) — $980
Okay, I’m cheating on this one. The homebuilder actually broke through $1,000 last month, staying there until it closed below that mark yesterday.
NVR has never traded this high, even during the sudsy real estate bubble days several years ago. The new highs are well earned. Unlike most of its lesser peers, NVR has been able to remain profitable during the downturn. It only posted a single deficit — during the fourth quarter of 2008 — as it rolled through the darkest days of residential real estate.
NVR’s conservative approach has paid off. Revenue and earnings bounced back last year, and the good times should continue. Analysts see revenue climbing 34% this year and another 18% come 2014. At $1,000, NVR would only be fetching 13 times next year’s projected profitability, and that’s a solid foundation to build on.
Priceline.com Inc (NASDAQ:PCLN) — $688.20
The “name your own price” online travel portal has been a big winner over the years. Priceline also owns other travel websites, making it a global force.
