Comments on: Google above $500: A look at valuation http://blogs.reuters.com/blog/2006/11/21/google-above-500-a-look-at-valuation/ Just another Blogs.reuters.com weblog Mon, 09 Nov 2009 13:58:01 +0000 http://wordpress.org/?v=2.6.2 By: Chris http://blogs.reuters.com/blog/2006/11/21/google-above-500-a-look-at-valuation/#comment-182877 Chris Tue, 22 May 2007 01:20:56 +0000 http://blogs.reuters.com/2006/11/21/google-above-500-a-look-at-valuation/#comment-182877 a 4th grader can trade google. Learn flags and pennants. Here is last weeks google chart with technical analysis. http://www.naughtyconnect.com/z.jpg I trade goog once per day. 70% of the time i am right. Happy trading. -Chris a 4th grader can trade google. Learn flags and pennants. Here is last weeks google chart with technical analysis.

http://www.naughtyconnect.com/z.jpg

I trade goog once per day. 70% of the time i am right.

Happy trading.

-Chris

]]> By: Anuj Varshney http://blogs.reuters.com/blog/2006/11/21/google-above-500-a-look-at-valuation/#comment-74034 Anuj Varshney Thu, 30 Nov 2006 21:39:54 +0000 http://blogs.reuters.com/2006/11/21/google-above-500-a-look-at-valuation/#comment-74034 The valuation above is based on eps growth sensitivities in 5 yrs, but considering that the trade volumes per unit outstanding share for google is much highr than market, the valuation would have been richer and more usable if was ws done for shorter period returns. ANuj Varshney Baruch College The valuation above is based on eps growth sensitivities in 5 yrs, but considering that the trade volumes per unit outstanding share for google is much highr than market, the valuation would have been richer and more usable if was ws done for shorter period returns.

ANuj Varshney
Baruch College

]]> By: Alea » Blog Archive » Links http://blogs.reuters.com/blog/2006/11/21/google-above-500-a-look-at-valuation/#comment-72605 Alea » Blog Archive » Links Fri, 24 Nov 2006 13:39:24 +0000 http://blogs.reuters.com/2006/11/21/google-above-500-a-look-at-valuation/#comment-72605 [...] Google above $500: A look at valuation by Marc Gerstein [ Reuters blogs ] [...] [...] Google above $500: A look at valuation by Marc Gerstein [ Reuters blogs ] [...]

]]> By: stocktube http://blogs.reuters.com/blog/2006/11/21/google-above-500-a-look-at-valuation/#comment-72333 stocktube Wed, 22 Nov 2006 13:11:25 +0000 http://blogs.reuters.com/2006/11/21/google-above-500-a-look-at-valuation/#comment-72333 Google attracted such attention and crowds simply because there're not many nasdaq companies which can claim to enjoy such a growth since the dot-com burst. Those which were sustaining a good growth despite the burst inclusive of big-boys such as IBM, HP & Microsoft. Apple at earlier age before Steve Jobs were suffering - same with Sun Microsystem, EMC and so on. Then came these new kids from Stanford with a search engine competing with existing giant Yahoo and a bunch of start-up. When Google were being offered to Yahoo for $ 3 Billion, Yahoo refused and the rest is history. The success of Google, in my opinion is its' simple and easy to use interface - not much products to confuse the market. And based on online-advertising spending annually, it seems the sky is the limit for Google. Hence, it's all about "perception" that Google will continue to be the leader in web search business and only single digit of advertising spending is currently spent on-line. As long as Google continue to beat earning estimate, the stock price will continue to go upwards. You need a single quarter which Google miss the earning to create a free-fall. Google attracted such attention and crowds simply because there’re not many nasdaq companies which can claim to enjoy such a growth since the dot-com burst.

Those which were sustaining a good growth despite the burst inclusive of big-boys such as IBM, HP & Microsoft. Apple at earlier age before Steve Jobs were suffering - same with Sun Microsystem, EMC and so on.

Then came these new kids from Stanford with a search engine competing with existing giant Yahoo and a bunch of start-up. When Google were being offered to Yahoo for $ 3 Billion, Yahoo refused and the rest is history.

The success of Google, in my opinion is its’ simple and easy to use interface - not much products to confuse the market.

And based on online-advertising spending annually, it seems the sky is the limit for Google.

Hence, it’s all about “perception” that Google will continue to be the leader in web search business and only single digit of advertising spending is currently spent on-line. As long as Google continue to beat earning estimate, the stock price will continue to go upwards.

You need a single quarter which Google miss the earning to create a free-fall.

]]> By: Bennett Kong http://blogs.reuters.com/blog/2006/11/21/google-above-500-a-look-at-valuation/#comment-72174 Bennett Kong Tue, 21 Nov 2006 23:18:25 +0000 http://blogs.reuters.com/2006/11/21/google-above-500-a-look-at-valuation/#comment-72174 Hi, Marc, Thanks for the analysis which helps a lot in making some sense out of the seemingly high price for Google's stock. Just a couple of quick follow-up thoughts and questions assuming you have the numbers handy, what have Google's growth rates been in the last two to three years, and considering the growth cycles of a new company and the winding down of its rate of growth, what would you think the average growth rate be for the next five years? I understand it is mostly assumptions, but I think you guys have better intuitive sense on these things than most people... Thanks much for your time. Bennett Hi, Marc,

Thanks for the analysis which helps a lot in making some sense out of the seemingly high price for Google’s stock. Just a couple of quick follow-up thoughts and questions assuming you have the numbers handy, what have Google’s growth rates been in the last two to three years, and considering the growth cycles of a new company and the winding down of its rate of growth, what would you think the average growth rate be for the next five years?

I understand it is mostly assumptions, but I think you guys have better intuitive sense on these things than most people…

Thanks much for your time.

Bennett

]]>