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Google in After Hours Massive Selloff

     

walkman

10:15 pm on Jan 31, 2006 (gmt 0)



OUCH!
[finance.yahoo.com...]
After Hours (RT-ECN): 366.78 -65.8801 (15.23%)

Here are what matters to average investors--the headlines:
"UPDATE - Google profit misses Street target, shares drop"
"Google's quarterly results fall short of expectations"
"Google profit misses Street target"
"Google Earns $372.2M in 4Q, Misses Views"

Goog's valuation was and still is scary: they're worth about half of MSFT, and MSFT makes about $3 Billion a quarter in profit from a gazillion sources.

[edited by: walkman at 10:26 pm (utc) on Jan. 31, 2006]

aleksl

4:14 am on Feb 2, 2006 (gmt 0)



Hollywood, as in any world of opinions I hold one against yours. GOOG is surely overvalued and overspeculated, BUT so is the whole stock market. That what stock market is - speculation.

Yes, GOOG is a one-product company right now, and they need to step in and create a second product, and if they do (and oh boy they can) - see ya at $600/share. Now, this is all, of course, is based on Google delivering - and from where I sit they can turn on a dime and deliver 2 or 3 solutions into niches that proved to be highly profitable.

How about Google vallet? Just look at the integration of everything - AdWords and AdSense on the same password, Gmail - I'd say if this isn't something that Microsoft failed to do i.e. Passport, plus MONEY STREAMS, all under one roof then I don't know what I am looking at. No other non-technology company has an opportunity to invest so little money to have such a high earning potential. GE is not even in the same league.

hdpt00

5:10 am on Feb 2, 2006 (gmt 0)



All of the market is not specualtion. I have many safe dividend plays.

mcavic

5:24 am on Feb 2, 2006 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



from where I sit they can turn on a dime and deliver 2 or 3 solutions into niches that proved to be highly profitable

That's what I'm saying. Anything that they put their mind to will happen very quickly. Yahoo, on the other hand, has nice established services, but as I see it, lacks the motivation for innovation, or even improvement of their current services.

All of the market is not specualtion. I have many safe dividend plays.

There are some great dividend opportunities out there. But anything that's exchange-traded has at least as much risk as the S&P 500.

Kirby

6:16 am on Feb 2, 2006 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



My biggest problem with Google from the get go has been that they don't actually "own" all that much physically speaking

Warren Buffet was once asked about his preferred business model. He answer was "a toll road". While he was referring to companies like Qualcomm, and in some ways, MS, who make a ton from royalties, a gateway model like Google is a close second.

Expectations that were off, not earnings

Yep. Amaizing how much influence those analysts can have on a company's stock. Another company missed the Street's target this week by just a few cents and dropped 4%.

I wouldnt worry until Google's earnings drop to the 40% range from the 80%+ they are at today, then maybe people can claim that the sky is falling with somewhat of a straight face.

Hollywood

8:36 pm on Feb 2, 2006 (gmt 0)

10+ Year Member



Yet it all comes down to three things for the real money traders (Smart Money) to buy any shares, all three GOOG does not have.

1) A good stock chart (There are no technical analysis perks)
2) Low PE
3) Oversold Conditions - Filled GAP

So in short as of now the stockis up, I think it will close down as all indicators of smart money trading say this stock is over-bought still and has a long way to go to become healthy.

Hollywood

aleksl

4:17 am on Feb 3, 2006 (gmt 0)



What are these Google Stock Units (GSU) that I keep hearing about, that Google prints in just under $100 million dollars each quarter? Is that "paper money"? It seems to be essentially stock options, but they don't call it such so they can keep it under the radar? If all this is true, Google essensially borrows against it own future, and that COULD affect stock.

Hollywood

10:05 pm on Feb 3, 2006 (gmt 0)

10+ Year Member



NASDAQ: GOOG Just 81 (and one half) more points to go down till 300, then it is time to buy again... maybe... or at least reevaluate from that position, glad the nose bleed is over. (Felt like I was in Denver a while)

Hollyweird

aleksl

5:47 pm on Feb 5, 2006 (gmt 0)



Who cares about "target price", we both know it's a made-up BS.

However, the fact that Google practically "prints" stock options with their GSUs, and that U.S. Government doesn't like when someone says "no" to them - those 2 could be a BIG issues afecting stocks IMHO.

Acuity

5:25 am on Feb 6, 2006 (gmt 0)

5+ Year Member



You're waiting till 300? How do you figure that? I see support for Google coming up at 370 but more likely I believe the stock will re-trace to 360 before the bulls are back in charge.

Hollywood

12:16 am on Feb 8, 2006 (gmt 0)

10+ Year Member



Acuity

Doooh.... below 370 and falling.

GOOG [Last Trade price $367.92]-17.18 Points or -4.46%

See ya at 300

frontpage

9:22 pm on Feb 12, 2006 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Google shares may fall another 50 pct-Barron's
Sun Feb 12, 2006 1:25 PM ET

SAN FRANCISCO (Reuters) - Shares of Web search leader Google Inc. (GOOG.O: Quote, Profile, Research) -- off 24 percent from highs set last month -- could face a further 50 percent decline, Barron's said in the financial weekly's February 13 edition.

[today.reuters.com...]

BillyS

12:17 am on Feb 13, 2006 (gmt 0)

WebmasterWorld Senior Member billys is a WebmasterWorld Top Contributor of All Time 10+ Year Member



>>Google shares may fall another 50 pct-Barron's

I saw this earlier today. Not much in the way of news, I mean someone basically stating that with such a high P/E even small dips in earnings are going to send Google downward. Thanks for the lesson in finance.

Google and some of their employees benefited greatly from the run up. The company's got a very bright future, but at $470 / share, it's not exactly a good value (right now).

GOOG is currently trading (after hours) around 353. With a P/E of 72 and a forward P/E of 42, I'd say that $180 is about right and a good value for speculators.

andrea99

12:22 am on Feb 13, 2006 (gmt 0)



I'd say that $180 is about right and a good value for speculators.

If it gets that low, yes. There will be false recoveries before it hits its final low. For someone who missed the first run up, picking a low should be more fun than picking the high... :)

frontpage

12:32 am on Feb 13, 2006 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Google and some of their employees benefited greatly from the run up.

Your not kidding.

There has been massive insider SELLING of Google stock, not purchasing.

Take a look at these stats. These folks are cashing out now at the highs.

Look at these stats - Google Insider Transactions

[finance.yahoo.com...]

skibum

9:45 pm on Feb 13, 2006 (gmt 0)

WebmasterWorld Administrator skibum is a WebmasterWorld Top Contributor of All Time 10+ Year Member



That's a pretty sweet deal, sell tens of millions of dollars worth of shares and then take advantage of a non open market opportunity to get more shares for $0.00 to sell shortly thereafter.
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