Google.com worth up to 25 BILLION!!!

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Supahfreak

Golden Member
Jul 21, 2001
1,378
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Quoted from some random Trade Site:p

"NEW YORK - A world without Google is, at this point, unimaginable. Such is the ubiquity of the brand and even the verb--to Google--that the frenzy of its expected initial public offering is likely to make the company worth $20 billion to $25 billion."


I just heard this on CNN and couldnt believe it. They said that would make them bigger than Sony and Mcdonalds. I dont really understand how a search engine could possibly be worth that but oh well...

FreAk:Dcnn.com link
 
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Supahfreak

Golden Member
Jul 21, 2001
1,378
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0
My bad, CNN said...

"could have an initial market capitalization as high as $36.25 billion."

That makes more sense :confused:

FreAk:D
 
Modeps

Modeps

Lifer
Oct 24, 2000
17,254
44
91
Originally posted by: Supahfreak
My bad, CNN said...

"could have an initial market capitalization as high as $36.25 billion."

That makes more sense :confused:

FreAk:D
Click to expand...

Yeah, it says they'll sell like $3.3 billion.
 
F

flot

Diamond Member
Feb 24, 2000
3,197
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Well, think about it.

Could you imagine a world without McDonalds?

Now...

Could you imagine a world WITHOUT GOOGLE???
 
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jfall

Diamond Member
Oct 31, 2000
5,975
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Google used to be awesome, I started using it around the time it was first launched and it was great. Honestly, I don't find it all that much better than other search engines now. Mind you, I still use it.. but it's not as cool and revolutionary as it once was.
 
D

DaveSimmons

Elite Member
Aug 12, 2001
40,730
670
126
Price/earnings ratio of 100-110 vs. 15-20 for a normal company.

Like a Seattle Times columnist said, don't invest more in the IPO than you can afford to throw away.

Right now would be a good time to buy S &amp; P 500 index mutual fund shares instead, since they're at a low for the year. <broken_record> Vanguard.com's VFINX is a good choice </broken_record>
 
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Supahfreak

Golden Member
Jul 21, 2001
1,378
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I wonder how much actual assets a company like google.com has. All I can picture is a room full of servers and some dude sitting there trying to think of the next Holiday Google banner.

FreAk:D
 
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puffff

Platinum Member
Jun 25, 2004
2,374
0
0
Originally posted by: DaveSimmons
Price/earnings ratio of 100-110 vs. 15-20 for a normal company.

Like a Seattle Times columnist said, don't invest more in the IPO than you can afford to throw away.

Right now would be a good time to buy S &amp; P 500 index mutual fund shares instead, since they're at a low for the year. <broken_record> Vanguard.com's VFINX is a good choice </broken_record>
Click to expand...

you have to look at the industry to see what's a high P/E. you can't go across the board saying normal P/E is 15-20. tech stocks will usually have a higher P/E cuz people see growth potential. other industries, like the auto industry, will generally have a lower P/E. toyota motors has a P/E of around 12, and that's considered high compared to other auto companies.
 
V

Vette73

Lifer
Jul 5, 2000
21,503
9
0
Sounds liek soem have forgot about the internet bubble, it already burst.


If anything, short google IPO a week-month after it comes out and wait a year. Easy 50-100% return.

Yahoo just came out with there own search engine, microsoft said they are working on soemthing, etc...
 
G

gigapet

Lifer
Aug 9, 2001
10,005
0
76
Originally posted by: Marlin1975
Sounds liek soem have forgot about the internet bubble, it already burst.


If anything, short google IPO a week-month after it comes out and wait a year. Easy 50-100% return.

Yahoo just came out with there own search engine, microsoft said they are working on soemthing, etc...
Click to expand...

BING0
 
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Argo

Lifer
Apr 8, 2000
10,045
0
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In addition to what everybody here said - I fail to see possibility for growth. Unless Google decides to use the money it raised to venture into new industry, I fail to see what they can do to grow. Maybe become a web-portal like yahoo, but that'll be an uphill climb.
 
K

KEV1N

Platinum Member
Jan 15, 2000
2,932
1
0
They need to deliver more tangible products, like that rackmount intranet spider / cataloguer I remember seeing a while ago.
 
Nitemare

Nitemare

Lifer
Feb 8, 2001
35,461
4
81
Originally posted by: jfall
Google used to be awesome, I started using it around the time it was first launched and it was great. Honestly, I don't find it all that much better than other search engines now. Mind you, I still use it.. but it's not as cool and revolutionary as it once was.
Click to expand...

Probably because they have licensed the google search engine
 
D

DaveSimmons

Elite Member
Aug 12, 2001
40,730
670
126
Originally posted by: puffff
Originally posted by: DaveSimmons
Price/earnings ratio of 100-110 vs. 15-20 for a normal company.

Like a Seattle Times columnist said, don't invest more in the IPO than you can afford to throw away.

Right now would be a good time to buy S &amp; P 500 index mutual fund shares instead, since they're at a low for the year. <broken_record> Vanguard.com's VFINX is a good choice </broken_record>
Click to expand...

you have to look at the industry to see what's a high P/E. you can't go across the board saying normal P/E is 15-20. tech stocks will usually have a higher P/E cuz people see growth potential. other industries, like the auto industry, will generally have a lower P/E. toyota motors has a P/E of around 12, and that's considered high compared to other auto companies.
Click to expand...
I agree to a point, but a P/E of 100+ assumes an incredible amount of revenue growth will occur.

Google's revenue doubled last year because of the huge success of high-priced adwords, but that was probably a one-time jump. gmail could also bring in a big jump in ad revenue but they need a lot more to justify that high of a P/E, assuming they can even keep what they have in the face of yahoo's search plans and Microsoft's monopoly-powered search.
 
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austin316

Diamond Member
Dec 1, 2001
3,572
0
0
Originally posted by: onza
is google stock even out?

i cant find it..

and if so link :)
Click to expand...

not public yet. Ticker will be 'goog'

In addition to what everybody here said - I fail to see possibility for growth. Unless Google decides to use the money it raised to venture into new industry, I fail to see what they can do to grow. Maybe become a web-portal like yahoo, but that'll be an uphill climb.
Click to expand...

I agree with this, however with the IPO resulting in $3+ billion for them to work with, I guarantee they will be able to expand and grow. Plus, the one thing with Google is that their products always, IMO, seem to be the best. google, best search engine. google answers, best answer service. Gmail, best free e-mail client. Images, best image search on the net. I say an obvious step for them is becoming a portal.

Two things that scare me and other investors is that their entire revenue is almost strictly based on their ads. What happens if a browser comes along that can effectively block those ads? (i think one already exists that can block some adds at some sites.) What happens if let's say right now, one out of ten people click on an ad, and that number falls to 1 out of 20 next year? Google will expand their ways to make money or they are doomed to fail.

The other thing is their comp., MS and Yahoo! Think back to when people thought Netscape was untouchable. MS has so much money, they have many more options than Google.


On a side note, the cover of Time talks about Las Vegas' recent explosive growth. It was stated that 6.2 Billion was spend there last year (gambling, hotels, food, etc.) Funny to think that Bill Gates has enough money to match ALL the spending that goes on in Vegas for like 10 straight years.
 
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cHeeZeFacTory

Golden Member
Apr 23, 2001
1,658
0
0
ok i don't know much about google, but how can they be worth that much? Their search engine is free right? They can't possibly be making that much from ads.
 
TuxDave

TuxDave

Lifer
Oct 8, 2002
10,571
3
71
Originally posted by: cHeeZeFacTory
ok i don't know much about google, but how can they be worth that much? Their search engine is free right? They possibly be making that much from ads.
Click to expand...

I thought that they licensed out their software to companies
 
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