Reuters Google shares set for fall: Barron's Sunday November 26, 6:31 pm ET NEW YORK (Reuters) - Google Inc. (NASDAQ:GOOG - News) shares, which topped a milestone price of $500 a share last week, are overvalued and poised to fall, just like peers Amazon.com Inc. (NASDAQ:AMZN - News) and eBay Inc. (NASDAQ:EBAY - News) did, the weekly financial newspaper Barron's reported on Sunday. Barron's said Google is overvalued because it trades at 37 times next year's expected earnings and because its growth rate is slowing. It also noted that Google now has the 15th largest market capitalization among U.S.-traded shares, and its price-to-earnings ratio is two to three times higher that of similarly sized companies. Analysts predicted a 33 percent gain in Google's earnings in 2007, versus the 81 percent increase the company is on track to produce this year, Barron's said. The paper added that the price that advertisers are willing to pay for search keywords has fallen. Slowing revenue growth would be painful for Google, Barron's said, because of its rising expenses. Spending on research and development, sales and marketing and general and administrative expenses are all expected to outpace revenue growth this year, Barron's said.
This is interesting....I will watch GOOG'ly on Monday for the reaction to this story. We are setting up for an exciting week....I can just "feel it"
goog is gonna keep on goin'. blow out numbers and no option scandals. company growin' fast and money pilin' in on a daily basis. may retrace but will get into the 1000s sooner or later. entirely possible the article will be taken as bullish..goog opens lower than is bot up and end up the day positive.
Barrons also had GOOG on their front cover earlier this year when it was at 375 saying it was going to fall by 50% this year. Bwahahahahahahaha. Remember the "Gurgle" headline? Of course the stock did open down that following Monday and went straight up from there from 350 to 500. Good call Barons!!!! Seriously, Barron's is one of the better fades still left around.
Few weeks before the elections Barrons did a piece where they stated that there was no way the Dems could take the house and senate. Nice little statistical proof they offered too, something like a 95% certainty that it could not happen. Oops!
I remember that one, they said the democrats would lose, they were way off on that. However I think GOOG could trade down to the 497-500 area tomorrow.
They also said you should sell put on the homies so you get paid while the stock tanks to value buy level.