Barrons: Google shares could fall another 20 percent

[poster_boy]

NEW YORK (Reuters) - Google Inc, whose shares have plunged more than 40 percent since November, could fall almost another 20 percent due to the U.S. economic slowdown and aggressive spending by the Internet search engine company, according to the latest issue of Barron's.

"While a short-term bounce might follow the stock's swift descent, the shares are likely to head even lower if analysts start slashing their earnings estimates to reflect today's tougher operating environment, as they should be doing," the report said.

The article's headline questioned whether Google shares, which closed on Friday at $433.35, could be headed below $350.

Reuters [reuters.com]

[ebound]

If you would have told me that GOOG could hit $350 a few months ago, I would have called you crazy. But that stock is a $417 and falling. I say bring it on. They are solid and I see great value in GOOG at $350 per share.

[Sharpseo]

Barron's also did a cover piece in Feb 2006 predicting that GOOG could fall 50% to $190 in Feb 2006.

“share price could well be cut in half over the next year as the Internet giant grapples with growing competition from Microsoft and Yahoo!, increased pricing pressures in its online ad sales and mounting concern about what’s known as click fraud.”

[cjr.org...]

Not exactly a great track record :)

[skibum]

increased pricing pressures in its online ad sales

Whoever wrote that didn't understand the dynamics of the search advertising market. If an engine delivers ROI, and it is an auction model then there is no [downward] pricing pressure on ad prices.