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Last Updated: Tuesday, 9 October 2007, 21:17 GMT 22:17 UK
Google shares continue to surge
Google logo, AP
Google shares shave risen almost 20% in the last month
Shares in the search giant Google surged again on Tuesday following strong comments from analysts.

Lehman Brothers said it expected Google to move into the mobile phone market and predicted it could launch its own handset as soon as February 2008.

The shares closed up 0.9% at $615.18 having earlier been up as much as 2%.

Its brief rise above the $620 mark made it one of the 10 most valuable listed US companies for the first time, overtaking Johnson & Johnson.

"We expect the device to be a low-priced, simple-form-factor handset with a Google-designed operating system specifically designed for Internet applications," Lehman said in a note to clients.

It also raised its target for Google shares from $610 to $714.

The suggestion that Google plans to get into mobile phones was supported by the news that it had bought the Finnish firm Jaiku, which makes a mobile phone application that allows people to use instant messaging to keep track of each other's activities.

No financial details of the acquisition were given.

Google went public in August 2004 at a price of $85 a share.

Larry Page and Sergey Brin, who founded the search engine, have seen their wealth rise to $20bn each.

In the past month alone, Google has seen its shares increase 19.6%.



SEE ALSO
Google shares breach $600 level
09 Oct 07 |  Business
Google, IBM back 'cloud students'
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Google profits rise on ad revenue
19 Apr 07 |  Business
Google unveils UK payments system
12 Apr 07 |  Business
Google reveals exec salary deal
04 Apr 07 |  Business
Google agrees mobile deal with LG
28 Mar 07 |  Business

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