GOOGLE Plunges!

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imported_Tango

Golden Member
Mar 8, 2005
1,623
0
0
Originally posted by: LegendKiller
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.


Me too. But Buffet is value orientered, and has been so his whole life. Good strategy, but not the only one.
 

jlmadyson

Platinum Member
Aug 13, 2004
2,201
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Google down 50 points today thus far. Warning from Google of slowing growth.

Text

Google (GOOG:Nasdaq - commentary - research - Cramer's Take) plunged 10% early Tuesday after a top executive conceded that the company's fastest growth is behind it.

Google finance chief George Reyes, speaking at a Merrill Lynch conference Tuesday morning, said that "clearly our growth rates are slowing."

"You can see that each and every quarter," Reyes told investors and analysts. "We are going to have to find new ways to monetize the business."

GOOG
 

Genx87

Lifer
Apr 8, 2002
41,095
513
126
i wonder if their perks will start to get cut ;)

Seriously this place is run like your A-Typical dot com in the late 1990s. Pool tables, massage parlors, table tennis, free flowing attitudes that work when your stock is hot and can raise capital very easy to fund these perks. But when reality finally catches up with you and realize the costs involved with these things you can expect these things to go away.

 

techs

Lifer
Sep 26, 2000
28,561
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Microsoft is going after Google full bore. With Vista coming out I don't see how MS won't use it as an opportunity to cut into Googles revenues.
Google better watch out. It may eventually go the way of Netscape.
He who controls the operating system controls the game.
 

LegendKiller

Lifer
Mar 5, 2001
18,256
68
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Is this surprising at all? Idiotic growth rates put the targets up that high, along with that moron analyst pegging it at 600. It's amusing that people refuse to acknowledge that 30+% growth rates are only sustainable for a limited period.

Gotta love price - price feedback loops.
 

Slew Foot

Lifer
Sep 22, 2005
12,381
96
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Originally posted by: LegendKiller
Is this surprising at all? Idiotic growth rates put the targets up that high, along with that moron analyst pegging it at 600. It's amusing that people refuse to acknowledge that 30+% growth rates are only sustainable for a limited period.

Gotta love price - price feedback loops.

Houses on the other hand, can rise in price forever. Free money for everyone!!!