What is Digg?147 Comments
- tgraham, on 10/12/2007, -0/+6Google is massively over-valued. I've no doubt it'll fall some and then stabilize.
- marksven, on 10/12/2007, -0/+4Just like the last stock market bubble, people saw this coming from a mile away, but the stock price just kept on climbing, leading otherwise intelligent people to think somehow the laws of economics no longer apply. This cycle keeps happening, and every time people are shocked at the outcome. Until today, this stock had a P/E of 95, which really tells you something.
- inactive, on 10/12/2007, -0/+4I think this is a correction well needed in google. its way too overpriced. As a company I love them, but as a stock, i wouldn't touch it, even after this 13% drop.
- Annon, on 10/12/2007, -0/+3I'm trademarking the term "Google Bubble" right now.
Maybe Wall Street is finally seeing that the only thing they've done is a sparce set of average (or less) quality releases.
I can't believe this didn't happen sooner, like when they unveiled the amazing "Google Pack"
lol - kevin.gc, on 10/12/2007, -0/+3it's already recovered $20 since this was posted.
- SPNKrPunk, on 10/12/2007, -0/+2I'm with all the Bears on this one. Google was trading at a very high PE ratio for a while, and that pretty much demands stellar performance. This is nothing more than a correction.
Time for me to Abandon Ship with my one measly share. - DJPandemonium, on 10/12/2007, -0/+2"It's obviously a bubble, any idiot can see that. How could a search engine stock be worth more than a computer developer stock when the latter is much more established?"
First off, Microsoft's stock has split nine times now. NINE TIMES. Their relative prices are therefore largely irrelevant.
Secondly, if you still think that Google is a search engine company, then you really don't know what's going on at all... - suMMx, on 10/12/2007, -2/+4google = overrated
- linkvx, on 10/12/2007, -0/+2googles popularity didn't come from advertising, it came from not advertising
- Lynn, on 10/12/2007, -0/+2Down 20% in the last 20 days. 3 weeks ago it was at $475 a share. Today it is $379 a share. They have lost $27 Billion in Market Value.
- inactive, on 10/12/2007, -1/+3Google stock is a worthless investment unless you bought it when it was still very low.
It's obviously a bubble, any idiot can see that. How could a search engine stock be worth more than a computer developer stock when the latter is much more established?
It's time for the giant to fall. And I will be very giddy when it happens. - jasqwerty, on 10/12/2007, -0/+2@jpecknip
Huh? I trade after hours, and I'm not a millionaire. You realize that the price goes over to the next open, right? 'After-hours' isn't some magical, independent market. Google won't open tomorrow at whatever it closed at today, it'll open at whatever it closes in pre-hour trading. - geminitojanus, on 10/12/2007, -0/+2It's already on the climb back up.. the market has a HUGE tendency to over-react to earnings data. Still down 10% on the day, but nowhere near the 20% earlier.
- b7j0c, on 10/12/2007, -0/+2"after hours means nothing"
WRONG
"it will bounce back in the AM"
thats what people buying YHOO at 450 thought too. it went to 7 before it "bounced".
"this is not 1999"
why do you think bubbles can only happen once? - pies, on 10/12/2007, -0/+1Google has had exactly the same kind of drop 12 months ago, and then went back up again. That, and I would also refrain from taking financial advice from anyone with enough free time to comment repeatedly on Digg.
- paulchu, on 10/12/2007, -0/+1harry, people are calling a BUBBLE because they believe it's about to pop soon. it's not the dot-com bubble of 2000, but it's certainly a bubble.
google's high price per share is based only hope of what's to come, google investors are hoping that google will dominate the web advertising market. but realistically, I never click on any internet ads, and neither does anyone I know. How many of you digg users click on google ads? - jaybones1515, on 10/12/2007, -0/+1I JUST MADE 575,000 ON A SHORT SELL. I told ya guys... Google is overrated. Check out one of the other google stories from last week where I made a comment about the short interest on their stock. Also check out the "future of Google" story, I commented that I was about to make a ***** by shorting their overvalued stock.
I cashed out, but I still say Google is worth only 90-100 share, tops, with a market cap of maybe 5-10b. - DJPandemonium, on 10/12/2007, -0/+1"googles popularity didn't come from advertising, it came from not advertising"
No, their popularity came from having some good services that work. Their money came from advertising. - Berkana, on 10/12/2007, -0/+1You know what's terribly amiss here? When companies like Google and Apple perform extremely well, but miss the analyst's predictions (a.k.a. Wall street target prices), and their stocks tumble. That is the most back-assward arrangement of market pricing I've ever known.
In this case, and in the case of Apple, both vastly increased their earnings and profits, but their stocks fall because they didn't meet analyst's predictions. Why? Because the morons presume there must be something wrong with the company. HELLO?! When the company's performance doesn't match the analysts' predictions, the analysts need to be smacked upside the head for making stupid predictions, especially if the company performs well. But somehow, folks think the analysts can't possibly be wrong, so if the company doesn't meet the best-guess predictions based on limited information, and performs incredibly well--but not as well as the over-optimistic analysts predicted, they penalize the company by treating its stock like trash. Utterly moronic. Why should a company's stock get trashed at all if it performs well? If the reality doesn't match the predictions, they're acting like there's something wrong with the reality when they should be acting like there's something wrong with the predictions.
In this case, Google's earnings nearly double:
http://www.siliconvalley.com/mld/siliconvalley/13760664.htm
Somebody do me a favor and serve a dung pie to those idiotic analysts. - elrawtic, on 10/12/2007, -1/+2If you bought it when it first went public, you are still in the black.
- hiro, on 10/12/2007, -0/+1Buy for the bounce and then start shorting. The world id sbout to fall out of its bottom
"The stock market wouldnt allow for it to drop that much. They have a cap on how much stocks can grow and fall"
Run that one by me again................... - emostar, on 10/12/2007, -0/+1It's gonna go down more before it comes up, I'll be buying when it hits $300
- paulchu, on 10/12/2007, -0/+1tagg, nope, i wouldn't dare put money into a mutual that invests in stuff that i wouldn't personally invest in.
pies... sure it may have had that kind of drop 12 months ago, but a lot of people are changing their opinions about GOOG - EternalNY1, on 10/12/2007, -1/+2Run the numbers. As the company stands now, this is a $100 stock.
If they broaden out into some real (non-advertising based) businesses, then I will re-evaluate. But as it is, stay away. - zbeast, on 10/12/2007, -1/+2Seash guys. Googles not going anywhere. It's standard business practice to Automatically sell any stock no matter who they are if they miss a quarter. You then set a limit order at what you then there new lower price will be. I had 1000 shares of google I dumped that as fast as I heard the miss.
I lost only 10 dollar a share and still saveed $300 a share profits.
If you short this stock you'll get your ass handed to you. no I'm not a google booster. I could care less about the company But I play the market because I want to retired before I'm 30 and way to old to enjoy life. 4.0% interest annually is just not enough.
Hell buy and read "Real Money" by Jim Cramer.. He's a crazy ***** but he knows his stuff. - Crazen, on 10/12/2007, -0/+1Google in my opinion is way overpriced, they really don't offer that much, and copy a lot of what others do. Most of what they have is a catchy name, a search algorithm that is now being exploited like crazy, and copying Yahoo, Microsoft, and other companies that used to be in the limelight. They were once overpriced too, but the market realized their mistakes and evened things out.
- jaybones1515, on 10/12/2007, -0/+1The problem with "google is an advertising company" is this: sooner or later, ad revenue will fall. Because GOOGLE IS NOT AN EFFECIENT ADVERTISING MEDIUM, AND COMPANIES WILL EVENTUALLY GET THAT. With T.V., you have 30 second (longer) ads that you watch because you are passively watching. You are sitting on a couch watching linear content (ie, show/break/commercial/show/break/commercial). Google is more like a newspaper, however, you cannot clip a coupon from Google, you cannot (usually) carry google with you on the train, or to the store.
Google, like most of internet advertising, is not effecient right now. It doesn't matter that one billion eyeballs are looking at the google page, it only matters how many of them notice and respond to adsense ads and pop ups. - mike_p, on 10/12/2007, -0/+1@Greves... agreed! Everyone here must be rich because they're giving advice like they know it all...
Plain and simple, all stocks are a gamble... Hype or no hype, everything and nothing will effect the value of a share. - Soldan, on 10/12/2007, -0/+1you have to remember the value of google in not really base on thier search....its all about the huge database they have and ads...the rest of thier product are crap..just slapped together...where is all this money being spent not on google videos that is for sure...I am glad some of you are well of enough to benefit from the stock market.. but those of us...in the shallow end of the pool never seem to have enough cash to even dream of making money on stocks... what do you really own anyhow....unles they are handing out dividends..seems silly
- nrbelex, on 10/12/2007, -0/+1^dainbramage559^"Whoah, whats wrong here? I seriously cant see why people would be glad to see google go. Perhaps I am just outside in the cold, but I've been using google for quite a number of year now, and personally I love it. So, what is the deal here with diggers not liking google anymore?
I really dont care how much money google makes. Their services are useful and cool. Anybody care to list their gripes about google so that I could understand this newfound grudge digg has developed?"
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I think the growing consensus here is that after the Google Pack, poorly prepared technologies like Google Video and little innovation in their original focus (web search), Google has jumped the shark. - EternalNY1, on 10/12/2007, -1/+2I shorted this at $439 earlier today, before the earnings. Shorted right into that nice runup we saw before Greenspan spoke.
I would be VERY careful about buying this in the morning. Although there is a chance this stock will rebound some, this is a "dead cat bounce" as we call it.
There is a lot more to come off the share price, and I am not convering my short at this point. I love this company, but their market valuation is way out of whack. - rtfx, on 10/12/2007, -0/+1Google's decision to never split has a dramatic effect on who will own the stock in the long term. Small investors who were mostly interested in it as a "story stock" are probably scared of the high per-share price now. Within a few months to a year, assuming Google's business continues expanding, it will probably recover to 400 again, even if it goes through a massive decline in the meantime. And it'll be more stable at that point, since the "hotness factor" will have come off during the decline.
The fact of the matter is that Google's potential as a leader in search expanding to other markets is still unfathomable. - inactive, on 10/12/2007, -1/+2>>DIE GOOOGLE DIEEEEEEEEEE!!!!!
Whoah, whats wrong here? I seriously cant see why people would be glad to see google go. Perhaps I am just outside in the cold, but I've been using google for quite a number of year now, and personally I love it. So, what is the deal here with diggers not liking google anymore?
I really dont care how much money google makes. Their services are useful and cool. Anybody care to list their gripes about google so that I could understand this newfound grudge digg has developed? - osbjmg, on 10/12/2007, -0/+1just 15 billion bucks
- FullMetalMonkey, on 10/12/2007, -0/+1I bet that Google going through their "War Chest" of applications & services for something to release in the next week to help recover from this!
- ideadude, on 10/12/2007, -0/+1A company that increases earnings by 50%+ each year is allowed to have a high P/E. Remember that "E" in there stands for "earnings". As the denominator goes up, the ratio goes down.
Google has managed to take over the largest share of the online ad industry. Meanwhile, online ad spending is still minuscule compared to TV and Newspaper ads. As that money moves into online ads (or Google moves into print and TV ads), Google will make more money. As Google's earnings go up, it's P/E will go down and investors will push up the stock.
Google could sit on its current search technology and still see a 5x growth in earnings over the next 3 years based on momentum alone. 5x earnings mean 1/5th the P/E. Imagine what Google's stock price would be if it had a P/E of 20 right now.
This and more at http://www.investorgeeks.com. - kalisphoenix, on 10/12/2007, -0/+1Zionist dollars?
- subgenius, on 10/12/2007, -0/+1Actually, its only down $51 in after hours trading. Come tomorrow morning, however, there will be a few investors who will chicken out and dump. This will hit the rest of the market, but it will rebound. We won't see the type of hit the Nikei took a couple of weeks back.
It should be noted that most of the after hours trade were for odd-lots (1 to 100 shares).
-No, I don't have any google stock. - DJPandemonium, on 10/12/2007, -0/+1jaybones:
I beg to differ. Just because Google's advertising doesn't guarantee that they'll have a captive audience to sit and watch a 30 second video ad, or that you can't clip out a google ad and take it with you (though, I don't see why you couldn't print one) doesn't mean that it's an inneffective model. Their model is based far more on showing you ads that are relevant to who you are and what you are doing than on trying to grab the attention of anyone they can in hopes that some of those people will be interested..
Demographically oriented marketting is something that nearly every other advertising medium has been trying to get a grasp on for decades, but their content delivery is too static and insensitive to who is viewing it to allow them to really do this.
You're partially right in saying that it doesn't matter how many eyes see the ad, but rather how many people click the ad. If merely showing people an advertisement was entirely inneffective then television, magazine, newspaper, and billboard advertising would have died decades ago. But, you are right that it's far more important and relevant when someone clicks the ad... which is precisely why adsense pays for click--throughs rather than merely for views!
I would argue that adsense is one of the more effecient advertising mediums available. And, as technology marches on so that more people are, in fact, carrying google-accessing devices with them onto the train and to the store, and as Google continually adds more services that serve ad content, they are only going to become more effient. Just because it's not a delivery scheme that's been around for 50 years doesn't mean it's not effective. - panique, on 10/12/2007, -0/+0Web2.0-hiccup0.1 There will be more
- ziggystardust, on 10/12/2007, -0/+01. the stock didn't crash. It's an after hours sell off typical of any stock that is hit with a couple bad, biased headlines.
2. the stock didn't miss its target. It simply did not exceed its target like it has consistently done every other quarter. Analysts expected a beat but got a meet.
3. This is a stock trading well below what it should be. Most stocks that are properly valued trade at a PE ratio of 30-35, Google trades at over 70. Meaning that they earn a ***** load of cash for doing very little. they produce no tangible assets but supply a value.
If you think that Google is a bubble you are very very wrong. Read a book before you hit the keys.
It is now far undervalued and if you buy now you will see $500 by 2007. - mockstar, on 10/12/2007, -1/+1Google is evil.
- mcgirt, on 10/12/2007, -0/+0@paulchu
I use the Customize Google firefox extension so I don't even see the ads. - mike_p, on 10/12/2007, -0/+0"However, it IS way overprices, and even the long term investors may decide it is time to move on. It is not like it is goin to go much higher. MAUYBE it could eventually return to where it closed today. But there is nt much profits to be made by buying Google today.
And now that I think about it, the high price is also a reason why it s less likely that the stock will rebound all the way back too. Again, the high cost takes away the quick buck feature. The quick buck day traders would only be able to buy 10 shares at most."
@jkfan87: You're basically saying that some people are dropping off the bandwagon... When they come off, more buyers will happily jump on because of the "low price" that is "less likely to rebound"... - mbajax, on 10/12/2007, -0/+0Cramer was pulling out GOOG long before the announcement and the fall. StockDigg users voted GOOG sell on balance and Motley had a few articles on Google misses, all tagged to the front page on http://www.stockdigg.com. It seems that the collective wisdom of Digg philosophy is working out on StockDigg.
- DJPandemonium, on 10/12/2007, -1/+1"dipandemonium...well, what else has Google done that has been successful? NOTHNG. Those who think that they are poised to branch out into an office suite, or an OS are basing it on NOTHING. So far, they have done ONE thing well, and the rest mediocre or poorly."
Have you ever heard of a little thing called adsense?
Google has done plenty of things succesfully: gmail, searching, blogger, desktop apps (picasa, google earth, etc), maps, etc, etc. But, these are merely content delivery systems for their real business, which is advertising.
Once people get it through their skulls that Google is an advertising company with an extremely versitile and flexible advertisement delivery model, they will realize that Google is not really overhyped, and that they are going to make some very serious money for a very long time. - TAGG, on 10/12/2007, -0/+0Notice - thouse crashes - are not only Google Inc. crashes - but your Check your 401Ks and mutual funds out money too !!
It's like Microsoft in 199x - http://www.billparish.com/msftfraudfacts.html
One major word - "diversification" allow Brin and Page to put 1.000.000.000's of your pension money into their pockets. - Harry, on 10/12/2007, -1/+1At least 50% of the comments I have read are so stupid I want to just cry.
A 10-15% drop is not a crash.
The 1999, 2000 bubble was a BUBBLE because stocks were being pumped up that had no significant earnings.
Google has AMAZING earnings. Obviously, it was not worth its 95 or so P/E, so it will be revalued to reflect its reported earnings.
A 85% INCREASE in profits is not a sign of a bubble stock.
Please read any decent book on finance.
No, I do not have any positions, short or long, in Google. -
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