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pocketchange1
Should I buy Google stock now that it is in the S&P500?
                     
 




Kin Tsui
If you need to ask people, then I suggest you don't buy.
Invest on what you know is a basic.

My opinion on Google is too risky. Earning per share is $5, price is $400, P/E is 80.
I think P/E of about 25 is reasonable which mean the EPS should be about $16.
The problem is the price wont be stable until the earning catch up, if the earning keeping up, the price will be up and P/E will be same. The P/E will drop until the growth slow down and people dumping the stock.


Frank Castle
Rating
I can advice you.


Common Sense
A stock getting into the S&P500 is not a reason (itself) to get into a long term hold of any stock.

All it says is the percieved value of Google puts it into stocks of a certain size. Period. (& so what).......


4knowledge
The earnings price ratio is exceptionally high. I wouldn't buy it.


cgimwei
I would not. The valuation of google has been a question of debate. Besides, looking at technicals, it is almost at its peak. Wait for a reversal and then, just perhaps you will be able to get in.

My other question is why tie a large portion of your capital in google when you can buy more shares in other companies?


dshcpa
Rating
well, it seemed like a strong performing stock before it was on the S&P 500 but I'd keep in mind that it is an internet stock, the google "fad" could wear out eventually, and one should always diversify their portfolio regardless of the name.


KiNG⋆LATiNO
LoL. I thought when you buy an Index stock you are forced to buy a piece of every stock in that index. Thats what the whole big deal about Google getting to S&P500 was -- that people who already owned S&P500 stock would be forced to own a stake of Google -- which would cause the price of googles stock to increase..


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