Google's Stock Surges Past $400 Mark
Washington Post reports on Google stock breaking $400 for the first time. Unless you are a Google Engineer, I doubt that many readers of TW are holders of Google stock, so may not find reason to celebrate. However Google employees are backing their options both ways and are selling stock. Apparently now Google's stock market value of $117.7 billion makes them worth tens of billions of dollars more than the combined value of Amazon.com and Yahoo.
Quote:
As Google stock has skyrocketed, co-founders Sergey Brin and Larry Page, Chief Executive Eric Schmidt and hundreds of other Google employees have sold billions of dollars of the company's stock. The sales by Brin, Page and Schmidt alone have put hundreds of millions of dollars of cash into their pockets
And analysts continue to be surprised as to how the bubble continues to grow.
Quote:
Caught flat-footed, various Wall Street analysts announced new price targets for Google stock as high as $450-a-share.
You sort of wonder why, if insiders are selling,outsiders continue to invest.
- Y! MyWeb
Bubble
Thats what happens in a bubble though isnt it? They dont invest because of what they think it is worth but because they think it will rise and they can sell to some other sucker
Artficially inflating
It could seem, to the casual observer, that GOOG is almost artficially inflating their stock by releasing all these new 'products'.
In which case, it wouldn't matter if the product worked or not, just that it was out there creating buzz.
It could seem, to the
yes, i was thinking this may be a possibility as well. IMO it is a particularly wise strategy if they plan on doing more acquisitions, and financing those acquisitions largely by giving stock shares to the acquired company.
not just GOOG
This guy did I nice quick review back in June... looks even worse now. A bit more fanatical but detailed is this warning article.
when google annouced their
when google annouced their Q3 earnings above wall street's expectations, i watched on CNBC as every analyst practically wet themselves with excitement at the room for growth in earnings. my jaw hit the floor when i saw that six major investment banks had put price targets on google's stock at $420 to $450 in Q3 of 2006.
maybe the analysts they spoke to were playing their cards closer to their chests than i give them credit for, but everything they were talking about to justify these valuations was directly attributable to ad sales - potential for growth in online advertising, companies re-distributing their ad budgets away from print and tv towards online, google's enviable position in the market, etc. if the analysts were excited about google's new products, they didn't show it. in my experience, analysts love numbers and metrics. i'm sure the new products are "on the radar", but personally i doubt if they see apps like google base as much more than an egghead experiment at the moment.
Yahoo
Yahoo does bigger profit and have almost half the market cap, sure google have increased growth compared to Yahoo, but can't say that means they should have a 52$ billion higher market cap.
so come on guys, short call
so come on guys, short call them ;)