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Google Prices Stock at $85 Per Share
Chris_R




msg:1232020
 12:48 am on Aug 19, 2004 (gmt 0)

Google has announced that the auction has closed and the winners will get the shares at $ 85.00.

This give Google a Market Cap of $23,053,669,655
, a Price/Earnings Ratio of 120.88, and a Price/Sales Ratio of 10.81.

This compares to Yahoo having a Market Cap of $38.75B , a Price/Earnings Ratio of 111.69, and a Price/Sales Ratio of 14.77.

All ratios are TTM (trailing twelve months).

 

Lord Majestic




msg:1232050
 8:29 am on Aug 19, 2004 (gmt 0)

I don't understand why people will call this an intention to rip-off anyone.

P/E is 120+! This means it will take 120 years to get the money via normal course of business, this assumes no inflation and that the company will be around for so long! Internet (as most people know it - WWW) existed for just over a decade! There is no one who can predict what will happen in 10 or even 5 years time, the only likely firm that will definately be still around is Microsoft!

The only way I see some investors not being ripped off is for them to buy strategic stake in Google with a view to take it over later and save their own overpriced shares from falling down!

The whole process was transparent enough considering and there were certainly enough warnings.

More like they did enough to minimise chance of legal actions - if they were not required to disclose all possible risks (after reading which I don't feel like buying shares at tenth their float price), then I figure they would not have disclosed nothing.

[edited by: Lord_Majestic at 8:33 am (utc) on Aug. 19, 2004]

TinkyWinky




msg:1232051
 8:30 am on Aug 19, 2004 (gmt 0)

Companies have no reason to pay 7% when they can pay 3%

Unless brokers can secured more 4.1% + per share .... is that right? (of course they may have also allocated more shares ensuring that they would only have had to increase the share price by say 2%+

So (trying to work this through) if by using Wall Street the share price had been $90 per share then Google would have more cash...and probably a lot more good will and professionalism throughout the process....

(I apologise if the maths is all wrong I have been up with baby / programming all night so am struggling to even stay awake! I hope I convey the overall reasoning....)

Raymond




msg:1232052
 10:46 am on Aug 19, 2004 (gmt 0)

P/E at 120? Why would anyone buy shares at P/E 120?

While all "reputable" companies have their P/E at 10 to 30, investing in a 120 P/E company is simply nuts. This isn't the year 2000 anymore, you know? Wake up!

amznVibe




msg:1232053
 12:46 pm on Aug 19, 2004 (gmt 0)

I guess this helps make it official :)
[finance.yahoo.com...]

christopher w




msg:1232054
 1:17 pm on Aug 19, 2004 (gmt 0)

According to Blooomberg they are going today (15 minutes and counting)

Aug. 19 (Bloomberg) -- Google Inc.'s shares may rise from their initial price of $85 when they open on the Nasdaq Stock Market today, according to futures contracts traded through Cantor Index and IG Index in London.

Full article:

[quote.bloomberg.com...]

harbs




msg:1232055
 1:29 pm on Aug 19, 2004 (gmt 0)

Google vs Wall Street! This is going to be really interesting....

Anyone catch the CNBC interview with Peter Thiel, founder of PayPal a couple of minutes ago? He summed it up perfectly. Basically the institutions are unhappy they can't get Google cheap and this IPO is gonna set a huge precedent by bypassing big IB commissions when it comes to subsequent VC startups...

Go GOOGLE!

netguy




msg:1232056
 1:35 pm on Aug 19, 2004 (gmt 0)


CNBC is reporting that there will be a slight delay in the start of trading for GOOG this morning - between 10am and noon Eastern time.

christopher w




msg:1232057
 1:38 pm on Aug 19, 2004 (gmt 0)

CNBC is reporting that there will be a slight delay in the start of trading for GOOG this morning - between 10am and noon Eastern time.

Just saw that - more updates to come shortly.

From CBS Marketwatch:

Traders expect first trade between 10 a.m. and noon EDT

xcandyman




msg:1232058
 2:01 pm on Aug 19, 2004 (gmt 0)

Looks like it's started

[finance.yahoo.com...]

----------------------
Price Size
55.00500INET

What does that mean?

Thanks

Lord Majestic




msg:1232059
 2:04 pm on Aug 19, 2004 (gmt 0)

Basically the institutions are unhappy they can't get Google cheap and this IPO is gonna set a huge precedent by bypassing big IB commissions when it comes to subsequent VC startups...

I don't think so - if nothing else VC's have realised that its much better to pay 5-7% of issue but get $36bln valuation, rather than pay 2% and end up with $20bln (or whatever) valuation. They made an example of Google, and I think future trading of shares might show that being different is not always being better off.

finer9




msg:1232060
 2:07 pm on Aug 19, 2004 (gmt 0)

Will not trade until 11:40AM

loanuniverse




msg:1232061
 2:07 pm on Aug 19, 2004 (gmt 0)

What does that mean?

It means that someone is willing to pay $55.00 per share right now. One bid or one ask does not mean anything right now. When it hits the market is when we will know.

harbs




msg:1232062
 2:51 pm on Aug 19, 2004 (gmt 0)

I don't think so - if nothing else VC's have realised that its much better to pay 5-7% of issue but get $36bln valuation, rather than pay 2% and end up with $20bln (or whatever) valuation. They made an example of Google, and I think future trading of shares might show that being different is not always being better off.

Well, in that CNBC report, famed venture capital backers Sequoia Capital and Kleiner Perkins Caufield & Byers think otherwise...This will be very, very interesting! It may reshape how Wall Street does IPO business.

There is so much negativity on such a popular company, its laughable.

superpower




msg:1232063
 2:58 pm on Aug 19, 2004 (gmt 0)

I wouldn't consider Sequoia very definitive--their MO is invest pre-IPO, dump their shares at inflated IPO prices and then your average joe investor is left holding the bag.

top5jamaica




msg:1232064
 4:00 pm on Aug 19, 2004 (gmt 0)

am i seeing right - [finance.yahoo.com...]
is google currently trading at 140 .. as in up from 85?

Shane




msg:1232065
 5:06 pm on Aug 19, 2004 (gmt 0)

Looks like Shane was the closest without going over.
[webmasterworld.com...]

What does he win Clark?

Yeah Clark, what does he win?

..... Shane

Brett_Tabke




msg:1232066
 5:08 pm on Aug 19, 2004 (gmt 0)

[webmasterworld.com...]

This 47 message thread spans 2 pages: < < 47 ( 1 [2]
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