Will Google go up to $600 per share because of YouTube?

News: Is this irrational exuberance or what?  Credit Suisse (which had worked on the YouTube deal, but now can cover Google since the deal is done) has an analyst Heath Terry, who set the target price of Google at $600/share (it’s currently at $491.93/share.  Terry explains (see ZDNet):

The YouTube acquisition is certainly not without its own risks. The most significant issue facing Google following this acquisition is the potential for a deluge of litigation concerning copyrighted content on YouTube. A protracted legal battle in the courts could result in millions of dollars of legal expenses and settlement outside the courts is also a possibility. The worst case scenario can be seen in the fates of companies like Napster and MP3.com. Our analysis of the top 100 most viewed videos so far in November indicate that under 35% of these videos (by total views and number of videos) potentially contain contentious copyrighted material. This means that the majority of videos on the site are truly user-generated content. As a result, we believe the impact of Google/YouTube removing copyrighted content may be less than feared. However, it is unclear how much of YouTube’s traffic comes to site primarily for copyrighted content rather than user-generated videos.

Terry’s bet: The monetization of YouTube will outrun the copyright gnats. His price target for Google: $600.

Analysis:  Wow.  The stat on the percentage of user-created material that is the most popular (65% of the TOP 100 videos) is pretty amazing.  If true, it shows the huge potential for ordinary people to find viewers of their works on YouTube.  

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