enoriverbend
 |
Well, there's a reason the stock's high, but it might be a little too high.
For any company, the share price by itself means nothing. Google's earnings are on track for $15-16 this year and maybe $20 next year. Their growth rate has been superb, so investors have bid up the shares based on extrapolating that growth. So far that makes some sense... in fact, depending on which period you are measuring (TTm versus estimated 07 or 08), the PEG ratio is only a little over 1.1.
However, I'm a little skeptical about them being able to continue the same rate of growth for the next few years. I am not sure of this, though, so there's no way I'd short it either. In addition, they're still only really making significant money in their original product (ads and placement on the search engine), and all their hyped other projects have yet to show contributions to the bottom line.
As far as the nonfinancial aspects, I've been a huge fan of Google as a customer since the very start (way before the IPO). But liking them as a customer doesn't translate to liking them as a current investment. |
|
Clarissa
 |
Because google owns the entire world. |
|
L L
|
You may be amaze how google technology work, wait until the AI, Fuzzy, newronet and many more of these kind of technologies get to be full develop, google is just one of the right place and right time technology.
Fruit for thought. |
|
garrisonbight
|
Because Google is far superior to YAHOO and investors know it.
I only use YAHOO for Answers... I use Google for everything else. |
|
Mr. Prefect
|
Because the outlook for this company is remarkable and growing. They were the 1st with search, and the largest. They have gotten into other areas also of growth.
And........ because unlike other companies, they have not split their stock. |
|
Lex
 |
enoriverbend gave a very good answer. I would only add, in response to your question, that it is not a good idea to buy this stock at this level. It is overpriced. If you already hold it, sell it and pocket your profits. |
|
Nikolas M
|
I don't get it either. Maybe it is sexier than other stocks. I'll bet it slits at some point when the company falls on hard times and they need to do something to increase demand for the stock. Sometimes the market just doesn't make any sense to me. |
|
Frank Castle
|
Because Google owns YouTube. |
|
| |
|
Homepage 
Financial
Forum 
Investing 
No Spam
Adult 
Gambling
Unfinished
Deception
Plagiarism
Not English
