On the other hand though, does the fact that generally tech stocks are undervalued mean that if Google *does* float, it's stock will be undervalued whatever the aspiring sentiment and therefore a great buy?
10:59 am on Mar 17, 2003 (gmt 0)
Given weak technology stock valuations, an IPO would offer a very unattractive cost of capital. Given the instability of the market, publicly traded Google stock serves as poor compensation for employees
1. Its not necessarily that Google needs money. 2. Google's investors and employees with stock-options would like to have a real market evaluation of their shares worth and a possible way out. 3. "a very unattractive cost of capital", if a Venture Capitalist wants to cash a part of his stake in Google, it is not a cost of capital to Google. 4. I think even in this stock market, Google's IPO PE will be sky-high. 5. I would not be suprised if they only float 10-20% of the shares.
1:40 pm on Mar 17, 2003 (gmt 0)
Perhaps - but would the shares being issued at way over the real value not just cause another dot com mini-bubble?
3:42 pm on Mar 17, 2003 (gmt 0)
If Google did become a public company, I don't think GoogleGuy would be allowed to make anymore substantive posts here.
3:55 pm on Mar 17, 2003 (gmt 0)
UPS only floated 10% and raised 5 billion. Maybe Google can do the same.
3:57 pm on Mar 17, 2003 (gmt 0)
.. but would the shares being issued at way over the real value not just cause another dot com mini-bubble?