Google stocks overpriced?

brian · #1 (**permalink**) 03-30-2006, 03:50 PM

Was reading this at Threadwatch:
http://www.threadwatch.org/node/6043

It's been suggested for some time that the GOOG stocks are a bubble, but there were some really interesting statements made on the thread:

Quote:

more money changes hands in the form of derivates (bets on stock performance that can be traded themselves; e.g. shorts and puts) and buying and selling GOOG stock than any other speculation on Earth right now. Somewhere along the line of TWO POINT SIX TRILLION DOLLARS PER DAY
is traded in GOOG, mostly in the form of derivates.

To put it into even more damning perspective: When goog fell from $430 to $400 in a single day back in February, the NASDAQ posted 2% losses overall; almost all because of GOOG.

5 times more money is traded JUST IN STOCK BUYS/SELLS each day in GOOG than their entire yearly net profit.

The suggestion is that Google stock could cool down rapidly over the next few months, and that S&P are helping the brokerages keep their shirts on while dumping the stock.

Meanwhile Google has announced plans to sell another 5.3 million shares...

Last chance for Google to cash in?

Palm · #2 (**permalink**) 04-06-2006, 10:03 AM

Anyone investing in GOOG at present is taking a huge risk. The p/e reports just don't support the stock valuation of the company. GOOG is priced on hype not the ability to deliver. It's a mini dotcom bust bust bubble all of its own and the price can only come down from now unless GOOG do something phenomenal.

brian · #3 (**permalink**) 04-12-2006, 11:03 PM

I'm not an investor, but even I can see a bubble...

Finance Admin · #4 (**permalink**) 04-20-2006, 09:41 AM

Investing is often as much about following the crowd. Once a big stock starts climbing lots of people will see a bandwagon and jump on it. I think you'll find it's the same in most any investment market - people follow trends that look profitable, where they can, but that means some people will get in at the start of the climb, and others will only get on at the end, and face losing more.

Palm · #5 (**permalink**) 04-21-2006, 12:16 PM

The markets still love GOOG
http://articles.moneycentral.msn.com...20markets.aspx

Up 20% since S&P bought the stock. I'm surprised the earnings report is so good. I think everybody is.

feline · #6 (**permalink**) 08-12-2006, 04:14 PM

Maybe coz google has a name in search engine things and it is the pioneer in SEO while yahoo is very good in email and amazon & ebay in auction sites.

MasterMind · #7 (**permalink**) 11-27-2006, 05:09 AM

From a non-financial point of view, Google is taking its ambition too far.

Severely criticised in the past, Microsoft never was so hungry of power like Google seems to be.

brian · #8 (**permalink**) 12-03-2006, 10:11 PM

Seriously over-priced:
Platinax Small Business News » GOOG shares over $500

MasterMind · #9 (**permalink**) 12-04-2006, 12:17 AM

Oops, now I can see why this stock bubble is affecting its geniuses brains.