GOOG bubble
- Thread starter The Kin
- Start date
will she be wise enough to sell this time?
I posted this in another thread, but figured it may be worth-while to discuss it further here...
It appears as though the earnings are a little harder to hit this time. My calculations show that goog needs to report somewhere around $2.104 billion in revenue, or a 33.24% increase over last qtr.
In the last 3 qtrs, GOOG has increased revenue 14.00%(Sept), 10.18%(Jun), and 21.80%(Mar).
This makes me a little skeptical come earnings report time. Goog will still grow, I think only around 20-25% max, which utimately is only about $1.50 - $1.63 EPS...not the expected $1.73
...
any thoughts? the above calculations are based on the current trend and averages of R+D and SGA expenses...they can be cut back a bit..but not much.
It appears as though the earnings are a little harder to hit this time. My calculations show that goog needs to report somewhere around $2.104 billion in revenue, or a 33.24% increase over last qtr.
In the last 3 qtrs, GOOG has increased revenue 14.00%(Sept), 10.18%(Jun), and 21.80%(Mar).
This makes me a little skeptical come earnings report time. Goog will still grow, I think only around 20-25% max, which utimately is only about $1.50 - $1.63 EPS...not the expected $1.73
...
any thoughts? the above calculations are based on the current trend and averages of R+D and SGA expenses...they can be cut back a bit..but not much.
Any chance of GOOGLE being split. Cannot afford at $424. Do you guys think if it's a better idea to buy after it's shares get split?
The logic I am thinking that currently at $424 even if many people like to buy this share may not be able to buy however if it gets split in half or in any manner, then GOOG shares become a little more affordable hence many buyers will jump in and let GOOG will have another dream BULL run.
Any thoughts.
The logic I am thinking that currently at $424 even if many people like to buy this share may not be able to buy however if it gets split in half or in any manner, then GOOG shares become a little more affordable hence many buyers will jump in and let GOOG will have another dream BULL run.
Any thoughts.
If the stock is split..lets say 2-1...and the new price is now $200/share...
If I bought $500 calls presplit...what would happen?
Would there value be cut in half as well?
Thanks from a newbie
If I bought $500 calls presplit...what would happen?
Would there value be cut in half as well?
Thanks from a newbie
FYI, you can buy fractional shares at FOLIOfn, www.foliofn.com. You could buy $10 worth of Berkshire Hathaway if you really wanted to. It's also a good way to keep commissions from getting out of hand for odd lot investors.
Google's management has indicated that they don't intend to split the stock, but who knows.
Martin
Google's management has indicated that they don't intend to split the stock, but who knows.
Martin
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Agree with your friend & her GOOG IRA;
after they have been trending 200 days , thats not a bubble,
thats a good trend.
And as nickname Option Trader pointed out,commissions are cheap;
certainly cheaper than when QCOM hit the big trends.
.
Good things also come to those who wait ;
& study 50 day moving averages also.
GOOG Google vs Microsoft - WSJ (428.62 ) -Update-
According to the WSJ, in its first decade as a public company, Microsoft (MSFT) produced excellent shareholder returns. At well above $400 a share, Google currently is priced to succeed Microsoft. However, during its early years the software giant's stock was much more conservatively valued than Google's is today. Google's sales and profits are increasing fast. But what multiple should be placed on these figures? Low barriers to entry into the Internet search engine field might suggest a low valuation multiple. On the other hand, Google is entering new areas -- such as mapping, mobile search and wireless Internet. It could be argued that Google shares have potential additional value that would flow from profits to be earned from future business developments. Given the uncertainty of future revenues, it is impossible to calculate with any precision a fundamental value for Google's shares. Yet whatever happens to Google's business, it is unlikely that investors who buy in at the current share price will make out as well as Microsoft shareholders did in its early days. It all comes down to price. By comparison with Google, Microsoft was relatively cheap in its early years. In the five years after its 1986 initial public offering, Microsoft's average forward price-earnings ratio (based on year-end share prices) was less than 25 times. Yet Google shares now trade on around 70 times forecast earnings. The search-engine company is currently valued at more than three times the average sales multiple of the young Microsoft. Yet Google is not growing that much faster today than Microsoft was in its early days. At current valuations, the prospects for Google investors are a lot less exciting.
According to the WSJ, in its first decade as a public company, Microsoft (MSFT) produced excellent shareholder returns. At well above $400 a share, Google currently is priced to succeed Microsoft. However, during its early years the software giant's stock was much more conservatively valued than Google's is today. Google's sales and profits are increasing fast. But what multiple should be placed on these figures? Low barriers to entry into the Internet search engine field might suggest a low valuation multiple. On the other hand, Google is entering new areas -- such as mapping, mobile search and wireless Internet. It could be argued that Google shares have potential additional value that would flow from profits to be earned from future business developments. Given the uncertainty of future revenues, it is impossible to calculate with any precision a fundamental value for Google's shares. Yet whatever happens to Google's business, it is unlikely that investors who buy in at the current share price will make out as well as Microsoft shareholders did in its early days. It all comes down to price. By comparison with Google, Microsoft was relatively cheap in its early years. In the five years after its 1986 initial public offering, Microsoft's average forward price-earnings ratio (based on year-end share prices) was less than 25 times. Yet Google shares now trade on around 70 times forecast earnings. The search-engine company is currently valued at more than three times the average sales multiple of the young Microsoft. Yet Google is not growing that much faster today than Microsoft was in its early days. At current valuations, the prospects for Google investors are a lot less exciting.