GOOGLE Plunges!

Genx87

Lifer
Apr 8, 2002
41,095
513
126
Sometimes wonder if analysts dont poison the food supply.
They project 1.76 earnings and they come in at 1.54 and it tumbles. Analysts pickup large chunks of Google and hype it through the year as it continues posting nearly double the profits from last year.

 

BaliBabyDoc

Lifer
Jan 20, 2001
10,737
0
0
Originally posted by: Genx87
Sometimes wonder if analysts dont poison the food supply.
They project 1.76 earnings and they come in at 1.54 and it tumbles. Analysts pickup large chunks of Google and hype it through the year as it continues posting nearly double the profits from last year.

I would be inclined to say that was true except . . . Google has a pretty heady share price. Some would argue . . . near ridiculous price=near ridiculous earnings growth.

Brin and his boy lost enough money in a couple of minutes to buy Oprah several times over.
 

raz3000

Banned
Jul 14, 2005
441
0
0
in the AFTER HOURS trading (Google reported earnings after hours) the stock plunged, so you won't see it reflected in their price at most sites until tomorrow. Right now it is down 70 points after hovering at -55 for a while. Very volatile. If any of you have CNBC you can see it there.
 

catnap1972

Platinum Member
Aug 10, 2000
2,607
0
76
[rw nut]"Serves em right for not obeying Sieg Heil Bush's demands to turn over those search records!"[/rw nut]
 

Meuge

Banned
Nov 27, 2005
2,963
0
0
I don't know - someone did tell me that Google would pay dearly for refusing to turn over those records... both economically and otherwise.
 

charrison

Lifer
Oct 13, 1999
17,033
1
81
Originally posted by: Meuge
I don't know - someone did tell me that Google would pay dearly for refusing to turn over those records... both economically and otherwise.



This was going to happen. Their stock price is way over inflated.
 

Vic

Elite Member
Jun 12, 2001
50,415
14,305
136
Originally posted by: charrison
Originally posted by: Meuge
I don't know - someone did tell me that Google would pay dearly for refusing to turn over those records... both economically and otherwise.
This was going to happen. Their stock price is way over inflated.
Not turning over the records actually was a good publicity move for them (it's fashionable to hate Bush right now), and had nothing to do with this downturn caused by their overinflated stock value. People should be much more concerned about Google's policy of complying with the demands of Chinese government.
 

imported_Tango

Golden Member
Mar 8, 2005
1,623
0
0
I would say now is a buy again. But I sold it some time ago when I decided to stay 99% away from the US markets, so I haven't been doing my accounting/finance homework on Google to support this claim.
 

CSMR

Golden Member
Apr 24, 2004
1,376
2
81
Originally posted by: Meuge
I don't know - someone did tell me that Google would pay dearly for refusing to turn over those records... both economically and otherwise.
Maybe the money was subtracted from its earnings in advance?
 

B00ne

Platinum Member
May 21, 2001
2,168
1
0
Originally posted by: charrison
Originally posted by: Meuge
I don't know - someone did tell me that Google would pay dearly for refusing to turn over those records... both economically and otherwise.



This was going to happen. Their stock price is way over inflated.

No a P/E of more than a hundred and market value higher than DaimlerCHrysler, GM, Ford, Volkswagen and BMW together makes perfect sense for a company that owns a bunch of servers and a search algorithm ;)
 

LegendKiller

Lifer
Mar 5, 2001
18,256
68
86
Originally posted by: Tango
I would say now is a buy again. But I sold it some time ago when I decided to stay 99% away from the US markets, so I haven't been doing my accounting/finance homework on Google to support this claim.



I'd love to see justification for anything with a P/E ratio of 40+. Bring it on!
 

LegendKiller

Lifer
Mar 5, 2001
18,256
68
86
Originally posted by: Genx87
Sometimes wonder if analysts dont poison the food supply.
They project 1.76 earnings and they come in at 1.54 and it tumbles. Analysts pickup large chunks of Google and hype it through the year as it continues posting nearly double the profits from last year.


Analysts only have their knowledge and what corporate insiders are giving them as per Reg FD.

Financial analysis of equity is not a science, its an art, one which contains thousands of variables and at times has high variance. All they can do is piece together what the insiders say with their guideline announcements, earnings projections, and incorporate them into their own models.

If it were easy there wouldn't be a 3-year, 18-total hour exam, nor the 10,000 or so pages and 1,500+ hour or so study requirements for the CFA.


Given that, I'd say that many analysts out there are suckling rather than doing their job the right way. Personally, I'd take Google's rosey colored projections, slash them to pieces, build my own models, and go from there.

A 600 price target for a company that operates off of ad fees, has only IP, and doesn't really own or produce anything unique is pretty damn stupid.

Not even Berkshire Hathaway has that kind of record. I'd pick Buffet over some geeks any day.
 

imported_Tango

Golden Member
Mar 8, 2005
1,623
0
0
Originally posted by: LegendKiller
Originally posted by: Tango
I would say now is a buy again. But I sold it some time ago when I decided to stay 99% away from the US markets, so I haven't been doing my accounting/finance homework on Google to support this claim.



I'd love to see justification for anything with a P/E ratio of 40+. Bring it on!


Well, actually the P/E was 89 last time I did my math. I trade in the short term, so I would see Google strategic position is its market a reason strong enough to buy it. In a medium of long period I don't know.. it's not my kind of game.. that's what Funds are for. It could be wise to stay away from it if you are a long-term, value oriented investor. Missed gainings are better than lesses anyway.

But as I said before I sold it quite a long time ago, and I've not really done my homework on any US stock.

I'm staying 99% away from Wall Street in favour of Russia, India, Brasil, Japan and some EU. The 2005 results need no comment..