Msg#: 3472624 posted 11:32 am on Oct 9, 2007 (gmt 0)
We asked on Sep. 21, 2007 if Goog Stock [webmasterworld.com] would exceed $600 when it was at $560.55
In the latest reminder of the immense wealth created since Google went public in August 2004, shares in Internet giant surpassed $600 in Nasdaq trading on Monday, joining Warren Buffett’s Berkshire Hathaway among the six stocks that top that mark.
The stock advanced $15.57 to close at $609.62 on the Nasdaq Stock Market, 11 months after it topped $500. The company’s founders, Sergey Brin and Larry Page, who each owned about 9 percent of Google as of March 1, have seen the value of their holdings climb to more than $17 billion each since the company first sold shares to the public in 2004.
Msg#: 3472624 posted 2:07 pm on Oct 10, 2007 (gmt 0)
Let's think about this. $600 a share and a market cap of almost $200 billion sounds crazy. But Google is very profitable. They have a commanding market share on internet searches and show no signs of weakening. They just started their biggest quarter which includes the holiday shopping season.
Historically the Google spam team has made significant changes to their algorithm right before the holiday shopping season. Which innocently enough forces people with websites that the new algorithms dislike to significantly increase their adwords spend or miss out on the holiday sales (which for many retailers is not an option).
Recently Google has increased its saber rattling against websites that advertise online with paid text links. If Google were to implement a "quality update" in the next few weeks it should significantly improve the their "stock price quality".
Is their stock price crazy? IMHO yes, but I expect it to get even higher.
Msg#: 3472624 posted 8:42 pm on Oct 15, 2007 (gmt 0)
Doesn't look overvalued at all to me, I'm not selling my meager Google holdings. Forward P/E is 31, extremely reasonable. They have TONS of room to grow, both domestically and internationally.
PPC spending will keep increasing for the forseeable future. Google's in a very sweet spot: great business model, growing industry, good management, generating tons of cash at an envious profit margin %.
Plus they have the potential to steal market share in the software industry from Microsoft. MSN stealing market share from them in search seems extremely unlikely at this point. Throw in the possibility of getting into the cell-phone market in some regard, plus tons of other side-projects of which a few will probably make it big, and looks good to me.