Google shares cross $600 threshold for first time

By Michele Gershberg

NEW YORK (Reuters) - Shares in Google Inc. (GOOG.O: Quote, Profile, Research, Stock Buzz) surpassed the $600 mark on Monday, fueled by investor confidence that the Web search leader's advertising technology will capitalize on new areas of the media industry.

Google shares hit $600 for the first time early in their trading session on Nasdaq, then rose as high as $610.26, setting a new benchmark for the company whose shares priced at $85 at its initial public offering in 2004.

From its place as the leading site for conducting Internet searches, Google branched into Web video by buying YouTube, trod on Microsoft Corp's (MSFT.O: Quote, Profile, Research, Stock Buzz) turf with e-mail and other Web-based applications, and has taken aim at Yahoo Inc's (YHOO.O: Quote, Profile, Research, Stock Buzz) display advertising business with a planned deal for DoubleClick.

At nearly $189 billion, the company ranks 11th among the largest companies on the Standard & Poor's 500 Index by market capitalization. The ranking puts it behind software maker Microsoft and network equipment company Cisco Systems Inc (CSCO.O: Quote, Profile, Research, Stock Buzz), but ahead of retailer Wal-Mart Stores Inc (WMT.N: Quote, Profile, Research, Stock Buzz).

Some analysts see Google reaching $700 a share in the next year as it competes more fiercely with Yahoo and gains a foothold in new forms of Web marketing, including video.

Martin Pyykkonen of Global Crown Capital still has a $600 price target on Google, a view he will reevaluate after the company reports its third-quarter earnings on October 18.

"It's not going to be as easy to get to the next 100 points as it was the last," he said of Google's share price.

The average price target for Google shares is just over $614, ranging from $545 to $700, among 37 analysts polled by Reuters Estimates.