Google Stock Analysis and Rating
Stock Analysis: Google Inc.
Symbol: GOOG
Profile
If you haven’t heard of Google you’ve probably been living with the sewer people or at least under a rock. If you still need an introduction, Google is one of the few internet companies that emerged from the dot com bubble burst. It provides one of the most used search engines built around their patented PageRank technology, designed to provide users the most accurate search results for their queries.
Google generates revenue by selling add space on search engine results pages and through other sources including the highly successful Google Network. One of Google’s most successful and innovative partner programs is AdSense, a system that allows publishers of online content to earn revenue for displaying Google’s ads. (This site is “monetized” by Google AdSense.)
Google's Outlook
I guess the real question is “Am I going to buy it?” The answer is probably. Lets step away from the tremendous buzz this company has generated and look at this stock objectively.
Google’s P/E
Compared to some other big tech stocks like Yahoo! and Microsoft, Google has a very high P/E. Was it hype or a well run company that quadrupled Google’s share price?
I’m willing to say it’s a mix of both, leaning in favor of a well run company. Google has a track record of success such as their acquisition of Pyra Labs. Pyra Lab’s Blogger system was a great compliment for their AdSense revenue sharing program, it allowed bloggers to capitalize on their blogs and helped create a whole new niche in E-Commerce. The Google Earth project was an excellent marketing move. This morning, as I watched CNN and Fox News break the North Korean proliferation news, I saw the Google logo at least 10 times an hour as they zoomed in on crystal clear satellite images of Pyongyang and the alleged nuclear testing facility, bearing witness to Google's unparalleld software quality.
Final Review
Google was an excellent stock to buy a year or more ago, though there is definitely potential for this stock to grow over the long term (5 years or more). Short term, Google’s stock price is inflated. I have a hunch that this stock's price is going to fall as the hype winds down, and if it does Google would be an excellent stock to get into!
Symbol: GOOG
Profile
If you haven’t heard of Google you’ve probably been living with the sewer people or at least under a rock. If you still need an introduction, Google is one of the few internet companies that emerged from the dot com bubble burst. It provides one of the most used search engines built around their patented PageRank technology, designed to provide users the most accurate search results for their queries.
Google generates revenue by selling add space on search engine results pages and through other sources including the highly successful Google Network. One of Google’s most successful and innovative partner programs is AdSense, a system that allows publishers of online content to earn revenue for displaying Google’s ads. (This site is “monetized” by Google AdSense.)
Google's Outlook
I guess the real question is “Am I going to buy it?” The answer is probably. Lets step away from the tremendous buzz this company has generated and look at this stock objectively.
Google’s P/E
Compared to some other big tech stocks like Yahoo! and Microsoft, Google has a very high P/E. Was it hype or a well run company that quadrupled Google’s share price?
I’m willing to say it’s a mix of both, leaning in favor of a well run company. Google has a track record of success such as their acquisition of Pyra Labs. Pyra Lab’s Blogger system was a great compliment for their AdSense revenue sharing program, it allowed bloggers to capitalize on their blogs and helped create a whole new niche in E-Commerce. The Google Earth project was an excellent marketing move. This morning, as I watched CNN and Fox News break the North Korean proliferation news, I saw the Google logo at least 10 times an hour as they zoomed in on crystal clear satellite images of Pyongyang and the alleged nuclear testing facility, bearing witness to Google's unparalleld software quality.
Final Review
Google was an excellent stock to buy a year or more ago, though there is definitely potential for this stock to grow over the long term (5 years or more). Short term, Google’s stock price is inflated. I have a hunch that this stock's price is going to fall as the hype winds down, and if it does Google would be an excellent stock to get into!
Rating
Long Term: Buy / Hold
Short Term: Don't Buy / Sell
Scincerely Your Sensei,
Johnny Bravo
Scincerely Your Sensei,
Johnny Bravo
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investingsensei@yahoo.com
posted by Johnny @ 6:33 PM
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