Anyone who bought in at 140 ain't gona get their moneyback. Ever.
Posted on 11/21/2006 9:34:35 AM PST by ritewingwarrior
That is true of any stock. But the company is set to make over $13/share next year (I actually expect it will be closer to 15-16/share based on past history) so I don't recommend that if you have a brain. I think Google's stock will stagnate for 2 years from where it is with it going from 450-550. By that time it's EPS will be right at normal market (but less than industry) while still growing at 20-30% a year. So no, it may be slightly overpriced but not that much. At least for long term investment. Short term I think the chances the stock drops back down to 450ish is pretty solid.
Put it this way. Would you rather own P&G at 22x earnings for next year with 8% growth rate projected for the next several years or GOOG at 37x next year with 30-40% growth rate projected for the next several years. Google is NOT like the dotcom boom & bust. It IS making TONS of money, and its increasing greatly every single period. You people are not doing your homework.
Anyone who bought in at 140 ain't gona get their moneyback. Ever.
Another bubble that will burst.
They work for the Chinese...mining US technology, turning in dissidents, etc...all in exchange for the opportuninty to sell viagra and transvestite midget porn to a billion Chinamen.
Yahoo's PE ratio when it hit 140 a share was over 400 to 1. Google is at 51 times this year and 37 times next year and 22 times '08. Google is also growing much faster and has many years of REAL earnings, unlike Yahoo and the other internet guys at the time. Nice graph but it doesn't prove anything except internet stocks were about 10x overvalued in 2000.
I correct myself, when Yahoo's stock hit 140 a share, it's PE ratio was 583 to 1 (24¢ earning for the year). Google is at 51x current year earnings (would be the equiv of Yahoo's stock being 13/share in 2000 instead of 140), 37x next year and 22-24x the year after. You are comparing apples to oranges.
Tons of click fraud imho. I've seen it first hand. They were sued and they had to settle out of court. Of course, the settlement was peanuts.
P-p-p-ponzi
Damn! I missed Xerox in the 60s (before I was born), missed whateveritwas in the 70s (before I was born , too), missed Microsoft in the 80s, missed Cisco in the 90s, and now it turns out I missed Google in the zeroes! Just damn!
They may indeed be overvalued but not by that much. At their projected earnings growth rate the stock's PE ratio will be 10 to 1 in 2010 at current price which is about what Proctor & Gambles is. You do realize I'm discussing earnings and not your personal hated towards google?
Well don't let me stop you but my advice on this one is the train left the station long ago.
I wouldn't buy in now. But I did at 275 and dumped it at 400. If the stock split it wouldn't seem that bad. And you should always base your belief in reality. The stock is cheap compared to earnings 3 years out. Which is what I said. I wouldn't jump in now but I wouldn't expect a significant decline either. 450-550 trading range over the next 2 years is my guess.
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