Discussion in 'Stocks' started by uninvited_guest, Dec 7, 2005.

  1. Both GOOG and YHOO search engines and online advertising are identical. I do not believe either company has an advantage. But GOOG has a market cap twice that of YHOO (120b to 57b). So true value of GOOG is $200 per share.

    I believe that 2006 will be the year that GOOG comes crashing down to this level.
  2. Look at the ratios man...different EPS and revenue makes it very hard to make statements such as yours.
  3. AMD and Intel make fairly the same product too.
  4. cambece


    I think Google will stay at the top of its game, for me it is the better search engine yahoo bumps sites up or down depending on there affiliation with the engine. Google searches for keywords as priority. Google’s aim is to be the best and I think the company is doing that and will continue to do so. Although I dont know too much about either stock I know about the sites themselves.

  5. I am confused how you got your "true value," from the market cap?

    Market cap is # of shares * the price of 1 share. That would just give you the current price.
  6. True about market cap, but it's growth we are looking for. Forward EPS is what we are looking at here and the reason why goog is trading so high. The price is actually reasonable based on what they expect to earn in the future. I dont' see a 50% crash in google for 2006 unless of course they report terrible numbers and readjust estimates downward. BTW yahoo should be trading higher than it is now too, it should be around 46/share.

    *Earnings growth yoy for google: 633%
    *Earnings growth yoy for yahoo: .20%

    *According to yahoo finance.

    That is what you're paying for - GROWTH. Google has it Yahoo wants it.
  7. And their market caps are inline. INTC much higher than AMD, as it should be.
  8. I dont' think market cap is the best way to judge a company against its competitor. I think you have to look at its forward P/E ratio. in the case of amd and intc, either intc needs to do a double or amd needs to drop 50% to make them EQUAL companies. Problem is they are not equal companies.
  9. Basically, I agree, however I should point out that with all the earnings growth expectations baked into Google's stock price, "terrible" is a relative term. It would not take a big miss for the market to punish Google.


  10. look for it soon...
    #10     Dec 9, 2005