Google Tops $700, gPhone due out in weeks!

Hello guys! Its been barely a few weeks since we reported on October 10th that Google's (GOOG) stock price has crossed the $600 point, since then of course we are hearing endless rumors that Google's phone initiative, better known as the gPhone, will be announced in a matter of weeks, The Wall Street Journal and Reuters reported Tuesday evening that Google is in "serious discussions" with Verizon Wireless (VZ) to put its mobile "GPhone" software on Verizon phones.

Citing "people familiar with the matter," the paper claimed that Google was writing an open-source platform that would break the stranglehold of carriers over software on their devices by making development inexpensive and flexible. Programmers could tap into a phone's GPS unit for map-related services, the Journal mentioned as an example. Gmail, YouTube, and other common Google services would be tailored for the platform.

The WSJ said in an earlier article published Monday that Asian cell phone makers HTC and LG Electronics will be the first two handset makers to use the software.

Could this be the gPhone? (illustration by Gizmodo)

Google basically wants to make it easier for cellphone customers to get a variety of extra services on their phones -- from maps to social-networking features to video-sharing. To get its way, however, the search giant will have to overcome resistance from wireless carriers and deal with potentially thorny security and privacy issues.

"A Google-software enabled phone makes the most sense in emerging markets," said Charles Golvin, an analyst with Forrester Research. "The next 1 billion to 2 billion cell phone users are going to be people in these markets. And most of them will not own a PC. For Google to grow its Internet audience there, it makes much more sense for them to optimize the Web experience on a phone."

With all the buzz surrounding Google's phone its stock price has surged and passed $700, In the early hours of trading Wednesday, Google shares reached as high as $704.79 -- up 1.4% from the previous close. The stock was trading at $700.23 by early afternoon.

At $700, Google has a market capitalization of more than $218 billion, which would rank it fifth largest among components of the Dow Jones Industrial Average.

But even at $700, the analysts think that Google will go even higher in the upcoming months, current targets range from $630 to $850, with the median set at $730, according to data from Thomson Financial.

At least half a dozen analysts are predicting the shares will top $800 within the next 12 months.