Google Opening Price and Symbol Announced

[royaldank]

you need to buy more shares than that to offset the cost of purchasing the stock. if you buy ten shares at $25 a share, for $250 and pay a $15 commission for buying them, thats 6% of your investment. Further, you'll take another hit when you sell. You are much better to invest in a bond.

EX: let's say your 10 shares @ $25 reach a high of $30 two years later. So now you have $300 in stock and an increase in value of 20%, which is an absolutely huge gain. However, when you buy/sell the stock, you got charged $15 each time, for a total of $30. So your realized gain is $50 - $30 = $20. or an 8% ROI. A person who bought 1,000 shares @ $25 a share would have an 18.8% ROI!!!

Now while an 8% ROI still seems like an excellent investment, this was based on the fact that google goes up 20% in two years. You have to factor in the risk that it might not go up at all or even, go down in price. With all these factors, you much better investing in a cd or if your really interested in stocks, setting up a DRP account.

I see this, but here is a question. What is different about a $1 stock versus a $100 stock if you only have a certain amount to invest. Say John Doe was investing $1000 into stocks. He says, "If google had been lower priced, I would have bought some of that." John Doe is only investing $1,000 at the moment regardless of share prices. So, if John Doe really liked Google for some reason, the price shouldn't affect his decision if he only has so much to spend anyway?

 

[Zombie]

14.1 million stocks is what's estimated. The numbers they provided certainly loook impressive still $100+ is stupid unless it splits 1:3 in first 4 months.

"Second-quarter earnings rose to $79.1 million from $64 million in the first quarter. Revenue jumped 7.5 percent to $700.2 million from $651.6 million, according to the prospectus."

 

[GtPrOjEcTX]

Originally posted by: allisolm
Well, it depends how many shares they throw at the market. If it's a low number 100+ price can be warranted. Either way, I'm not touching that stock with a ten foot pole.

Supposed to be about 24.5 million shares.

that's not that low of a number is it?

 

[rh71]

talk about milking...

 

[austin316]

Originally posted by: royaldank

you need to buy more shares than that to offset the cost of purchasing the stock. if you buy ten shares at $25 a share, for $250 and pay a $15 commission for buying them, thats 6% of your investment. Further, you'll take another hit when you sell. You are much better to invest in a bond.

EX: let's say your 10 shares @ $25 reach a high of $30 two years later. So now you have $300 in stock and an increase in value of 20%, which is an absolutely huge gain. However, when you buy/sell the stock, you got charged $15 each time, for a total of $30. So your realized gain is $50 - $30 = $20. or an 8% ROI. A person who bought 1,000 shares @ $25 a share would have an 18.8% ROI!!!

Now while an 8% ROI still seems like an excellent investment, this was based on the fact that google goes up 20% in two years. You have to factor in the risk that it might not go up at all or even, go down in price. With all these factors, you much better investing in a cd or if your really interested in stocks, setting up a DRP account.

I see this, but here is a question. What is different about a $1 stock versus a $100 stock if you only have a certain amount to invest. Say John Doe was investing $1000 into stocks. He says, "If google had been lower priced, I would have bought some of that." John Doe is only investing $1,000 at the moment regardless of share prices. So, if John Doe really liked Google for some reason, the price shouldn't affect his decision if he only has so much to spend anyway?

yes and no.

No, because the price of the stock is always important to its value to an inverstor. What I mean, is that by looking at a prospectus, someone may feel that a stock is underpriced at $100 a share and would buy it. Further, someone doing research could look at a $2 stock and feel that it is overpriced and stay away.

Yes, to the fact if he really likes google, the price of the shares should not matter to him if he believes that they are priced correctly. His earning potential will be the same whether they are high or low.

 

[digitalsm]

WTF are these guys smoking?

24,636,659 shares at an initial price of $108 to $135 and an expected market cap of $35billion. Man thats same fine grade maryjane those people at Google are smoking to truely believe they are worth anywhere near that.

 

[NakaNaka]

I think I'll buy some Google short and not look at it for a six months, when the hype has died down.

 

[digitalsm]

Originally posted by: GtPrOjEcTX

Originally posted by: allisolm
Well, it depends how many shares they throw at the market. If it's a low number 100+ price can be warranted. Either way, I'm not touching that stock with a ten foot pole.

Supposed to be about 24.5 million shares.

that's not that low of a number is it?

Ebay's IPO was 3.5million shares and its initial price was $18 a share that shot up to $54.25 in one day of trading. Now its not anywhere near a huge offering, but for the price you have to be kidding me. UPS' IPO was four times Googles projected IPO. UPS raised $5.2billion off the 100million shares, Google is projecting to raise $3billion off 24.5million.

Now Im not saying people cant make money off of it, if you are a serious investor and can buy in, you should be able to. I just think its a ludicris valuation for a company like Google.

 

[MikeMike]

the thing is, has anyone EVER seen how much money google actually makes? without that info we can not determine if this is a valuable stock. i mean hell, they could be bringing in billions of $'s a year ,and we have no idea. if they really are, the stock price is moderately worth that. however, IPO buying i would hardly expect much of an increase at such a high price.

MIKE

 

[GasX]

Originally posted by: nourdmrolNMT1
the thing is, has anyone EVER seen how much money google actually makes? without that info we can not determine if this is a valuable stock. i mean hell, they could be bringing in billions of $'s a year ,and we have no idea. if they really are, the stock price is moderately worth that. however, IPO buying i would hardly expect much of an increase at such a high price.

MIKE

Yes, all of this is disclosed and some of it is even posted in this thread... knucklehead

 

[Parrotheader]

Coming from the advertisers perspective (the backbone to 95+% of Google's total revenue) I think people need to be VERY careful with this situation. I manage online advertising accounts for many companies with large advertising budgets on Google, Yahoo, etc. Google's advertising options are still very strong, but increased competition has steadily increased media prices and is decreasing ROI, particularly in the last few months. There was a time when we Google advertising easily outperformed Yahoo/Overture and similar services. Now that trend is slowly reversing.

Although some of the folks here won't like it, Google MUST diversify if they want to be a viable longterm solution for advertisers. Currently all they have going for them is the fact that they're a great search engine; but even that lead is virtually nonexistant now as other search engines have caught up (and arguably even passed them.) Google knows this which is why they're now branching out into e-mail and other personalization. They're basically following Yahoo's template.

 

[z0mb13]

the IPO price is completely arbitrary.. they can set the price at $1000 if they want to..

look at berkshire hathaway.. why is their stock price in the tens of thousands of dollars? The answer is they dont want regular people (i.e us) to be able to purchase the stock

IMO the reason why google set the ipo price at $100 ish is simply because they dont want the general public to be able to invest in the stock, they want people who can really invest to be able to participate in the google ipo..

if the ipo price is in 10-20 range, a lot of people will be able to purchase their stock, thus adding unnecessary chaos

 

[MikeMike]

Originally posted by: Mwilding

Originally posted by: nourdmrolNMT1
the thing is, has anyone EVER seen how much money google actually makes? without that info we can not determine if this is a valuable stock. i mean hell, they could be bringing in billions of $'s a year ,and we have no idea. if they really are, the stock price is moderately worth that. however, IPO buying i would hardly expect much of an increase at such a high price.

MIKE

Yes, all of this is disclosed and some of it is even posted in this thread... knucklehead

my bad didmt read everything.

MIKE

 

[royaldank]

"Overall, Google would have a market capitalization between $29 billion and $36 billion, counting shares held by insiders. Only 9% of the company's stock is being offered in the IPO.

"A market cap of $36 billion would make Google worth more than such corporate stalwarts as McDonald's (MCD) and Sony (SNE) and almost as much as drugstore giant Walgreen (WAG). Google rival Yahoo (YHOO) has a market cap of nearly $38 billion."