Relatively speaking, it could be a real bargain right now if it hits $500 billion or $1 trillion in market cap one day.
What do you guys think?
What do you guys think?
Do you think Google is still a good buy?
- Thread starter Taggart
- Start date
I think they're expanding into multiple markets against multiple entrenched competitors, and their business model is rather shaky. They've made an amazing search engine, but that can only go so far before they have to show a stable, tangible product rather than just advertising revenue.
If all your revenue is based on advertising, are you not just one or two bad PR cases away from dropping like a stone?
well considering they are going to take over the world you probably would do pretty good if you bought some... you would own part of the world!
I'll stick with S&P 500 index funds like VFINX, much much safer than buying into an ad-based company that has Yahoo and Microsoft as competitors.
Aside from competition, right now people are paying an arm and a leg for AdWords listings without knowing the effectiveness. If long-term the AdWord clicks aren't bringing in enough business to justify the high price then Google's revenue could tumble fast and far.
Aside from competition, right now people are paying an arm and a leg for AdWords listings without knowing the effectiveness. If long-term the AdWord clicks aren't bringing in enough business to justify the high price then Google's revenue could tumble fast and far.
That's the part I hate. It's the standard risk/reward scenario I guess. Enron and Worldcom were on top of the world and could do no wrong in '99-'00, and look what happened there!
It only takes one 'accounting irregularities' press release to kill a stock.
My standard for most firms is this: if you can't tell me in one sentence what your company does to generate revenue, your business model is BS.
Personally, I wouldn't buy google at its current price. I can't handle that much risk. However, maybe some of you guys will buy it and laugh at me when you are multi-millionaires.
I remember when some friends jumped on microsoft at $100 because it had dipped from $125 or something like that. Now, it's somewhere between $24 - $26 (last time I checked). I realize that they are very different companies, but my point is that I think that investors used more emotion that good thinking in both cases.
In any case, I've never "hit it big," but I've never "lost my shirt" either.
I remember when some friends jumped on microsoft at $100 because it had dipped from $125 or something like that. Now, it's somewhere between $24 - $26 (last time I checked). I realize that they are very different companies, but my point is that I think that investors used more emotion that good thinking in both cases.
In any case, I've never "hit it big," but I've never "lost my shirt" either.
Same here -- after 5 years, my pre-bubble holdings have almost fully recovered, and I've done nicely on the fund shares I've purchased post-bubble.
OK, thanks. So, for example, Home Depot would be on the other end of the spectrum, they sell home improvement supplies
IHateMyJob2004
Lifer
- Sep 29, 2004
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Google is a bloated unproven pig.
If you invest in Google, only do so with money you are willing to loose.
IHateMyJob2004
Lifer
- Sep 29, 2004
- 18,656
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Wow, goes to show you know nothing about Google. You probably shouldn't invest in them till you learn more. Tehy do more then fidn things on the internet.
Originally posted by: Taggart
OK, thanks. So, for example, Home Depot would be on the other end of the spectrum, they sell home improvement supplies
Essentially, yes, but this was just a rule-of-thumb that I picked up during my education, I heard it from one analyst talking about Enron and it makes sense in many cases.
Home Depot is an excellent buy, in my opinion.
IHateMyJob2004
Lifer
- Sep 29, 2004
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The obious:
http://www.google.com/enterprise/
They've had this baby for atleast a year. We got one at work but decided not to with it for various reasons (defense contractor). It is quite insane! It's like the google desktop thing (whcih I've never used), but on a LAN level.
IHateMyJob2004
Lifer
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Not to mention that they are going after wireless broadband right now. A small sample:
http://muniwireless.com/municipal/bids/846
http://muniwireless.com/municipal/bids/846
IHateMyJob2004
Lifer
- Sep 29, 2004
- 18,656
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This is just one example. I could swear they inked some deal will a company that owns the physical towers that would be needed.
I'm sure it's somethign they would charge for eventually.
IHateMyJob2004
Lifer
- Sep 29, 2004
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Google is all speculation right now. It's all hype.
I would rather collect dividends and know I can retire at 45 than gamble. I like boring stocks, so Google wouldn't be on my list. Even PFE is agood deal right now (thank you Merck!). And BAC trades with a 4.7% yield I think.
I'd ratehr collect my salary. I guess my point is, I don't know enoguh about Google to elaborate on it's prosepcts and it's to far away from my investemnt strategy to care. But saying it is a speculative stock is a fair conclusion to be drawn by anyone. Remember 3dfx?
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