What is Digg?94 Comments
- Hilton, on 10/11/2007, -2/+26List of Google Acquisitions in 2007:
Xunlei
Adscape
Trendalyzer
Tonic Systems
Marratech video conferencing software
GreenBorder Technologies
Panoramio
Doubleclick
FeedBurner
PeakStream
Zenter
And 2007 isn't finished Yet! - unusualbob, on 10/11/2007, -1/+24sounds like im going to go yell at my stock broker now.
- brianwesleyan, on 10/11/2007, -1/+17That's exactly what people were saying when google was at $100/share.
- timothybryce, on 10/11/2007, -2/+18The morons are the people that think that the dollar value of an individual share of stock has anything to do with whether a stock is a buy or not. I can show you plenty of $2 stocks that are wildly overvalued and stocks that trade in the hundreds of dollars a share that are undervalued.
Bottom line is that Google trades at a 34 P/E based on 2007 estimated earnings and 27 based on 2008. Google has grown earnings annually at a rate of 91% over the past five years, and projects 35% annual earnings growth over the next five. They have beaten analyst estimates over the past four quarters (and I believe more). Show me another stock growing earnings at 30% that's trading at a 30 P/E that doesn't have some crazy one-off problem and I'll show you another stock I'm buying.
For the sake of comparison, Amazon currently has a 67 P/E and lower growth. Yahoo, despite all its recent woes, has a 55 P/E. Blue Nile, 64 P/E. WebMD - 94. There are overvalued Internet stocks out there, but Google isn't one of them. Based on Google's current earnings numbers and growth, a 45 P/E is reasonable - gives you a $700 stock. - inactive, on 10/11/2007, -2/+14$600 is just a start... the p/e ratio is actually lower than it has been in the past. They have a massive amount of cash and could open up tons of different revenue streams! This stock will not stop running for a while. AMZN and YHOO are much more "expensive" than google on a p/e ratio, I would be loading up at this point.
Remember, people said it was expensive at 200, 300, 400 and 500... they will say the same thing at 600, 700 and 800. The price is just a number you need to look at the multiple to get a true value of a stock.
Happy investing! - Noah0504, on 10/11/2007, -0/+9Well, I find it funny that you're making an analysis about analysts.
- iceman0113, on 10/11/2007, -0/+8The prices of houses are going down in Silicon Valley. There's about 5 houses on my block alone that are having trouble being sold and their prices are steadily dropping each week. They're about 600k and dropping. I live about 15 min away from downtown SJ.
- Ludnix, on 10/11/2007, -1/+9My stock broker insisted that I not invest in Google despite my confidence in them. >-(
- Bondrake, on 10/11/2007, -0/+7Hmm, an iPhone or one share of GOOG.... choices, choices...
- anagoge, on 10/11/2007, -1/+7Hi Paris! Weird seeing you on here.
- inactive, on 10/11/2007, -0/+6That's what I think, but I'm not a stock expert. High P/E ratios mean that either the investors think that the company will grow substantially, too many stupid investors are buying into it inflating the price, or both.
I don't know what google's going to turn into; they're recruiting the best talent, they have a stronghold on internet advertising, their web site has become a verb (name recognition, ubiquity), and they have some of the best services on the web IMO (gmail, google news). On the other hand, they are acquiring everything in sight. Didn't Microsoft take a similar strategy? In the coming years, with the developing world coming online and the web becoming the platform of choice over the desktop, google is in the best position to dominate like Microsoft has.
Google may be a good buy, and if I were to buy I'd buy soon before the stock becomes too expensive for me to afford (they plan on following the berkshire hathaway model, no splits, to encourage long term investors) - third_eye, on 10/11/2007, -1/+6Why are you using a broker, anyway?
- timothybryce, on 10/11/2007, -3/+8That's incorrect. Google's EBITDA this year was $5.23 billion. 5 years of 35% growth puts you at $23.4 billion. US GDP in 2006 was $13.21 trillion, so you're off by a factor of approximately 6,000x. Try to think before you talk out of your ass next time.
And yes, Google pays me to come on Digg and "pimp up" (their words, not mine) their stock. - timothybryce, on 10/11/2007, -0/+5Berkshire Hathaway, if you're talking about per share price. $107,300.10 a share:
http://finance.yahoo.com/q?s=BRK-A - pooslinger, on 10/11/2007, -0/+5That's the housing bubble, not the web2.0 bubble. I would venture housing will take care of the new web2.0.
- pw378, on 10/11/2007, -0/+4I was stupid and missed buying Google at the IPO despite my better judgment. Then I went and invested half of my entire retirement in Google and saw the stock drop 10% in a few days. That sucked. Of course, I bought at $110 and it dropped down to $100. Since then, I have watched my money double, and double, and double again and its still going. All along the way, I have heard people talking about how stupid it was to invest in the 'next bubble'. I guess I would be pretty angry and bitter if I missed out on the party too.
I am not suggesting that anyone buy Google, or sell... IANAA (I am not an analyst). Talk to an professional broker or analyst to get advice, don't take advice from the guys on Digg. - Atomic1fire, on 10/11/2007, -0/+4google is not gonna bomb anytime soon
its got an entire market based on it
and its leading in the ad industry (both are interchained)
the bubble in the 90s was caused by companies blowing money
but google has a large cashflow from advertisers and a large market for ads based on websites funding themselves on ads
and the recent perchase of double click means that Google will have a nice sized extra cashflow
unless the internet dies
I doubt google will go down - inactive, on 10/11/2007, -1/+5Google is only trading at 1 times it's growth rate which is substantially low, that is why it is going higher.
- evilearsgonemad, on 10/11/2007, -0/+4Google hasn't yet transitioned into the services company it aims to be one day. However, they have tremendous ad revenue and have made impressive exclusivity deals with major partners.
- BossX, on 10/11/2007, -0/+4hahahah, good one.
- Daniel591992, on 10/11/2007, -0/+4hint: look at the guy's name ^^
- stockjones, on 10/11/2007, -0/+4Berkshire Hathaway
http://finance.yahoo.com/q?s=BRK-A&d=t - inactive, on 10/11/2007, -1/+4Couldn't agree more...
- timothybryce, on 10/11/2007, -1/+4When you have 99% of your net worth wrapped up in the stock of one company, it's stupid not to sell at least some.
That Google shareholders are cashing out after one of the most successful IPOs of all time is not in the least bit shocking. - inactive, on 10/11/2007, -1/+4But Google also has growth and a lot of it ahead of it... think about the fact that the internet is constantly growing all over the world so there are more and more queries ever single month. Well Google has been taking market share from ask, yahoo, and msn every month as well. Not to mention they have all the big contracts with all the big internet spots including digg. Just imagine how much money digg is pulling in to run adsense every day! This is just the beginning...
- Gunegune, on 10/11/2007, -0/+3Easy. Buy one share of GOOG, let it increase in value (as it most likely will), and then sell it when the iPhone 2 comes out.
- Buckiller, on 10/11/2007, -1/+4Don't know if anyone mentioned this... but Jim Cramer said Google would be getting up to $600 at least 2 months ago.
- jcardinal, on 10/11/2007, -2/+4Let's avoid another Tyco mistake. Let's carefully interpret the financial results in the annual report and make sure no revenue is inflated because of the acquisitions.
- timothybryce, on 10/11/2007, -1/+3You know when else this happened? When early Microsoft employees cashed out some of their shares when their lockups expired sometime back in the 80's.
- inactive, on 10/11/2007, -4/+6If Google had 35% annual earnings growth for the next 5 years the company would have a market cap larger than the Gross Domestic Product of the United States.
I'm guessing math wasn't your college major- or else you're a paid shill trying to pimp up Google's stock?
Ask yourself this question- is there any popular website that doesn't already have Google ads plastered all over it? (including digg)
Where is this massive growth going to come from? - timothybryce, on 10/11/2007, -0/+2I'm pretty sure that the research on analyst predictions is that on the whole, they're no more likely to be wrong on the upside as they are on the downside.
- inactive, on 10/11/2007, -2/+4Jim Cramer also said in march of 2000 that you should invest every last penny into stocks like Infospace and Brocade and Juniper..
If you had followed his advice you would have lost 99% of your money. - DJNewStyle, on 10/11/2007, -2/+4You'd probably be okay with buying 20 shares of a $50 stock.. why are you against 2 shares at ~500?
- roadtripper, on 10/11/2007, -1/+3no, that's not why stocks split. if you've read anything about Google, followed the stock or even followed the market at all, you would've learned that the two founders have no plans in the near (or even distant) future to split the stock. they are fans of warren buffett's approach to company growth.
http://www.usatoday.com/tech/techinvestor/stocknews/2004-11-06-no-google-split_x.htm
http://news.com.com/Google+Wheres+the+stock+split/2100-1030_3-6020207.html
http://www.venchar.com/2005/06/google_stock_sp.html
how are they ripping off investors? two $5s are worth the same as one $10. besides, a higher price usually means less volatility - because only bigger institutions can afford large blocks of shares that they trade infrequently vs. joe sixpack investor who buys 3 shares and then dumps them when he wants a new deck/boat/widget. - Daniel591992, on 10/11/2007, -0/+2Thanks :)
- Daniel591992, on 10/11/2007, -1/+3Which company has the most expensive share? Sorry if this is a dumb question...
- etnu, on 10/11/2007, -1/+3High PE compared to what? 75 year old blue chip stocks? Google's P/E is very low for it's industry -- their forward P/E is lower than Yahoo, Amazon, and most of their other competitors.
- MatTipton, on 10/11/2007, -0/+2First, don't take stock advice from media pinheads. They may be half correct, but more often than not they are going to make 600 sound way too easy. I don't think GOOG will go through any hard times per se... but I can definately see it dipping just below 500 before it climbs up to 600. GOOG is in a pretty nice ascending channel right now so it's probably not going to dip too far... if you are looking to buy, you should pay attention next week because the market will be dipping nicely. That may or may not cause GOOG to fall a bit... hard to tell. Currently that's a big upside to GOOG... right now it is strong enough that it doesn't do too bad when the market is down and even if it doesn't hold up very good it can still take a 50 point hit and recover fairly well.
- ggoyal, on 10/11/2007, -0/+2No that IS why stocks split. The reason why stock markets exist at all - to let easy trading / disposal of shares. If shares have to be sold to big corporations only, they don't need stock markets. They just need investment bankers for trading.
Besides, lesser price means more people can participate in the company's good performance and share the gains. - stockjones, on 10/11/2007, -1/+3The IPO raised about $1.7B . about 14.2m share for $4.2B. (all shareholder money). They added about $4B on their own just in the last two years. Not to say they arent sitting on Good money, but they spend it quickly and they have a market cap of 150Billion. A bit on the hype side and if earnings and profits dont keep increasing dramtically those investors will begin to sell.
- blaket, on 10/11/2007, -0/+2I'm so glad that I bought the 500k shares when the stock was offered.
*wakes up from his dream*
*cries at his reality* - ejdmoo, on 10/11/2007, -1/+2Yay! Innovation at its best! :P
- tech42er, on 10/11/2007, -0/+1And here I was hoping to buy some Google stock and sell it once it hit $600.
- inactive, on 10/11/2007, -0/+1I'm not an analyst or anything either, but having half your retirement money in a single tech stock isn't the most sensible way to approach things, look back to 7 years ago for why. Congrats on your gains, I'm jealous, but I would consider trimming your exposure to a single company.
- Atomic1fire, on 10/11/2007, -0/+1as this is a community oriented site
you will have people thinking that they know more
and also you will have people just using wikipedia and google as a swiss army knife of knowlege in order to look smart - geekitechture, on 10/11/2007, -0/+1"But hey- Google's stock could never go down. Because as we all know, selling tiny classified ads designed to look like content links is a sure-fire path to neverending wealth."
I love it. The way you put it reminds me of *****.com...a voice of reason amid GOOG fanboy worship. But damn, once again that site is gone... - 1337gmr, on 10/11/2007, -1/+2Looks like John Dvorak was right! Good call.
- pw378, on 10/11/2007, -1/+2Cramer also said to buy Google.. at $180... and $220... and $300.. and $350... and $450... and still says buy... What a moron he is. If you followed his advice on Google... ???... Profit...
- inactive, on 10/11/2007, -1/+2Wouldn't that be assuming that P/E remains the same over the five years? I don't think that's an assumption that timothybryce made. Simply that earnings would grow. The FAIR assumption is that as they grow, the P/E levels off at a more reasonable point (ie., it will drop).
- BGFeltenink, on 10/11/2007, -0/+1They don't want Joe Investor.
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