Google stock
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From: Syracuse, NY... again.
d@weezel music
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I posted this over at Valleywag about a week ago:
To further the comparison to MSFT, Google doesn't pay a dividend which increases the risk because you don't get any residual value for holding onto their shares. Contrary, MSFT pays a 1.4% dividend which based on a share value of ~$31, translates to $4.0 billion in annual distributions to its shareholders. That says a LOT about the financial solvency of a company when they are confident to put up their own cash for the shareholders.
I took a look at Google's B/S and Income Statement highlights and while they look strong on paper, there are a LOT of intangibles that point to them being overvalued.
BY DWEEZEL AT 11/06/07 12:56 PM
@sample032: I have been saying Google is over priced for months. It isn't necessarily the size of their market capitalization, but its votility. A $61 increase in Google's share price over the past week and a half ($737 vs $676) increased their market cap from $211 bln to $230 bln, or 9%. This looks good on paper, but with google losing focus of its core compentancy to create an oft-hacked OpenSocial network, hype about Android phones, and a fleet of private jets; there is a lot of pressure to keep their market cap on the rise.
Contrary to Google, a $5 increase in Microsoft's share price over the past week and a half ($36 vs $31) increased their market cap from $293 bln to $337 bln, or 44%.
The difference is that MSFT has been around for decades and have about 9.4 BILLION shares outstanding to Googles 0.3 BILLION shares. It isn't easy to put that many shares on the street, because too many splits or secondary offerings, and the price will get diluted to nothingness.
Google is about to reach its peak and it is going to be a MESSY ride down.
@sample032: I have been saying Google is over priced for months. It isn't necessarily the size of their market capitalization, but its votility. A $61 increase in Google's share price over the past week and a half ($737 vs $676) increased their market cap from $211 bln to $230 bln, or 9%. This looks good on paper, but with google losing focus of its core compentancy to create an oft-hacked OpenSocial network, hype about Android phones, and a fleet of private jets; there is a lot of pressure to keep their market cap on the rise.
Contrary to Google, a $5 increase in Microsoft's share price over the past week and a half ($36 vs $31) increased their market cap from $293 bln to $337 bln, or 44%.
The difference is that MSFT has been around for decades and have about 9.4 BILLION shares outstanding to Googles 0.3 BILLION shares. It isn't easy to put that many shares on the street, because too many splits or secondary offerings, and the price will get diluted to nothingness.
Google is about to reach its peak and it is going to be a MESSY ride down.
I took a look at Google's B/S and Income Statement highlights and while they look strong on paper, there are a LOT of intangibles that point to them being overvalued.
Thread Starter
Shake n Bake!
Joined: Feb 2006
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From: Pittsburgh, PA
I posted this over at Valleywag about a week ago:
To further the comparison to MSFT, Google doesn't pay a dividend which increases the risk because you don't get any residual value for holding onto their shares. Contrary, MSFT pays a 1.4% dividend which based on a share value of ~$31, translates to $4.0 billion in annual distributions to its shareholders. That says a LOT about the financial solvency of a company when they are confident to put up their own cash for the shareholders.
I took a look at Google's B/S and Income Statement highlights and while they look strong on paper, there are a LOT of intangibles that point to them being overvalued.
To further the comparison to MSFT, Google doesn't pay a dividend which increases the risk because you don't get any residual value for holding onto their shares. Contrary, MSFT pays a 1.4% dividend which based on a share value of ~$31, translates to $4.0 billion in annual distributions to its shareholders. That says a LOT about the financial solvency of a company when they are confident to put up their own cash for the shareholders.
I took a look at Google's B/S and Income Statement highlights and while they look strong on paper, there are a LOT of intangibles that point to them being overvalued.
That I did :chuckles:
snitches get stitches
Joined: May 2002
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From: Portland, OR
If you trade based solely on stock price, you don't deserve to be buying stocks at all. Earnings per share is far, far more important.
RB does men
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From: Pittsburgh