Gurus now bearish on GOOG?

Discussion in 'Technical Analysis' started by dividend, Jan 1, 2006.

  1. I noticed a sudden wave of "bearishness" and negativity towards GOOG recently...;_ylu=X3oDMTA3ODdxdHBhBHNlYwM5NjQ-

    In the above article:

    Meanwhile "Wired" magazine co-founder John Battelle, whose crystal ball is closely watched by the Internet technology faithful, says "Google will stumble" due to a bad partnership or a legal setback.

    The only time I saw more negativity was during the IPO, when its initial marketcap was more than Boeing or GM, or something like that; analysts had a fieldday talking about how overvalued it was. It was about $80 then.

    So, what gives? Why the sudden change. I think consumers are changing their attitude (slowly) toward google. I think they want to see alternatives now.
  2. simple.

    Everyone has come to expect more from google (which they have provided) up until now when the level of expectancy is larger and increases faster than Google can keep up with.

    The first sign will be the 4th qtr. earnings report. It will be good but not as good as wall street expects.

    IMO, it should correct itself between Feb - April.
  3. Maverick74


    Wow, the first real buy signal we have gotten in this stock in months. The more bearish they are on the stock, the more bullish I am.
  4. Banjo


    8:11am 01/03/06
    Google rallies as Piper Jaffray lifts target to $600 (GOOG) By Tomi Kilgore
    NEW YORK (MarketWatch) -- Piper Jaffray raised its price target on Google (GOOG) to $600 from $445 on the belief that 2006 will be a "banner year" for the Internet search services company. Analyst Safa Rashtchy reiterated his outperform rating and made Google his top pick in the large capitalization category. The stock was last up $7.96, or 1.9%, at $422.82 in Instinet pre-open trading. "Given the company's performance, market share gain and the pipeline of new products, we believe outperformance is still very likely," Rashtchy said. "We expect new initiatives, in particular Google's ad network and Google Base, to generate meaningful revenues by the end of 2006." He also believes the global search market will grow by 41% in 2006 and by 31% in 2007.
  5. I am curious how he came up with these "beliefs". 41% is, IMO, large considering the number of people who already participate in the "search market".
  6. This article offers some info about Google's adsense technology... and the company's foreign search sites contribute more to Google's bottom line than AdSense, because for every dollar the company brings in through AdSense and other places that distribute its ads, it pays roughly 78.5 cents back to sites like Digital Point that display the ads.

    But in some ways, search advertising has a more limited horizon, since the number of advertisements a company can display is limited by the number of searches its users conduct. Internet users continue to increase their reliance on search sites, and Google in particular, but the rate of growth is in the single digits.

    By contrast, millions of small sites have not yet signed up for Google's AdSense program, which was introduced in 2002. AdSense quickly gained a following among bigger companies with an online presence, like the Weather Channel, as a way to supplement their advertising deals and populate more obscure pages with paid ads. But as more small sites use the Internet to post photos, journals and other material, the number of pages that can carry new Google ads is growing quickly.

    That's what makes AdSense one of Google's most compelling long-term bets, said Charlene Li, an online media analyst with Forrester Research. "I've called Google the one-trick pony for a long time, and for the most part they still are," Ms. Li said. "But they really see AdSense as the next frontier."

    To that end, the company has refined the program significantly, with various features intended to attract more advertisers and publishers. For instance, as of late last year anyone who created a blog with Google's Blogger service was automatically enrolled in the AdSense program.

    "Before that, it was quite painful to figure out," said Gokul Rajaram, the business product manager for AdSense, "so over the last few months we've seen a sharp uptick in bloggers using AdSense."

    For AdSense advertisers, some of the more significant improvements began last June, when Google started allowing marketers to select vast groups of sites on which to advertise, as Paramount Pictures did last year when it chose 100 small sites with hip-hop-oriented content to promote its movie "Hustle & Flow."

    Late last year, Google also gave advertisers the ability to display graphical ads on sites within the AdSense network of publishers, as well as the ability to pay different (typically lower) prices for AdSense ads than those available on The company will not disclose how many advertisers have joined the program - "thousands" is all it says - but analysts said marketers were quickly warming to it, thanks in part to the recent upgrades.


    That last paragrah says that Google allows graphical ads now "within the Adsense network" (not sure what that means)... has anyone seen these graphical ads?
  7. I have never clicked on one AdSense link, they look and smell like snakeoil.

    All these bloggers looking to monetize their blogs, funny as hell :D

    Bloggin is gonna be like the rick springfield of the 80s.
  8. Maverick74


    Satchel, nothing you say is going to make this stock go down. While you are waiting for this stock to hit a $1000, why don't you read this book.
  9. GooG may have dipped on YHOO earnings;
    IBD still rates it highly, almost highest in many areas:cool:
  10. #10     Jan 17, 2006