Google Stock Gets Hammered - United Bimmer Community

**projal147** · 02-01-2006, 08:31 AM

In afterhours trading, Google lost about 15% of its value or about $53 off its Tuesday closing price. The stock is now down to $394 (and change)... While the stock fell, net income rose 82% over last year and sales rose 86% to $1.92 billion. As on analysit said, "The stock was priced for perfection, and its was not perfect this quarter."

The 15% drop in the stock price wiped out about $20 billion in investor gains.

Also analysits expect "Google to earn $8.79 a share on sales of $6.55 billion in 2006"

http://www.marketwatch.com/news/stor...d=google&dist=

craig · 02-01-2006, 08:33 AM

yeah.. i heard about that on the news about 3 seconds ago. kinda crapy

**c1apton** · 02-01-2006, 08:37 AM

Yea I just caught that on CNN International - that's wild. They also said some news agency/paper called them "Gurgle"

**komodo** · 02-01-2006, 10:08 AM

Haha, gurgle.

Stock prices can only go up so much... heh

drz · 02-01-2006, 10:19 AM

Would this be a good time to buy on the expectation that it will go back up?

**projal147** · 02-01-2006, 01:24 PM

^^ no Google stock is in for some more losses...

This coming year the profits will be strong along with sales but Google faces the same problem as all companies in the US will face, is tax payments on stock options... basically Wall Street is worried that Google is issuing too much private and public stocks to its employees. Analysts are worried that if employees begin to cash out on their options the company will have large payments to make.. along with tax payments on the options (Sarbains Oxly (sp))

Storamin · 02-01-2006, 03:09 PM

... and this is why you do not invest in a company with a PEG ratio that is off the wall like googles was. At the current 400$ share price, the PEG is 88. That's crazy.

A good share at an overvalued price is no good. A junk share at a junk price is wonderful.

I owned some google stock for awhile but I sold it a bit back. Buy low, sell high. I would not invest in google right now because of how much each share is. It is extremely overweight.

nick_318is · 02-01-2006, 04:28 PM

Storamin, what is the PEG ratio i don't think i have learned that one yet.

**c1apton** · 02-01-2006, 08:05 PM

Quote:

Originally Posted by nick_318is

Storamin, what is the PEG ratio i don't think i have learned that one yet.

Check this out - http://www.incrediblecharts.com/investing/peg_ratio.htm

nick_318is · 02-01-2006, 10:13 PM

thanks c1apton, havent gotten to that point in my finance class yet

Storamin · 02-02-2006, 06:13 PM

"More than 1.0 is poor;
Less than 1.0 is good;
Less than 0.5 is excellent. "

haha... so many companies have a PEG MUCH higher than 1.0... it's a gamble, but then again if you want to take gambles sometimes you will be rewarded for them. i have a stock screener that had a certain few variables and chose companies that met all those critieras. stocks under 1.0 PEG among other things such as high growth over the last 10 years had about 400% over the market versus stocks over a 1.0 PEG and didn't meet the other variables... they did about as well as the market, give or take.