Google is good in search advertising, and nothing else (and if the proverbial three guys in a garage come up with a better algorithm, it could lose much of its luster practically overnight). They will have to find new areas of growth to justify high premiums to the broad market.

Seriously, though. Google’s having a pullback, no big deal. Their long term projected growth rate is still awesome. $2000 in 10 years seems conservative. Avg analyst target on GOOG is still $710, which usually means within a one year timeframe. If they grow at an avg of 20% for 5 years, then 10% for another 5, that should put them there.

And those estimates are based on current revenue sources, aka search advertising. Enterprise Apps has huge potential to take market share from Microsoft, for example.

This current drop is not about earnings – its all about multiple compression. Google still trades at a premium to the market, around 40 times this year vs. 20 times for the SP500. It has this premium (which just a few months ago was nearly 60) due to its higher growth rate and favorable risk/reward ratio. As that goes away, suddenly even though earnings look great, multiple comes crashing down so the stock looses 1/3 – 1/2 its value within weeks. Its all happened before, will continue to happen in the future as expectations reset.

http://www.infosupply.com

What is so great about google now, can someone tell me? They are leaders in search, but come on, yahoo search is as good, so google’s quality is more in the minds of the users. Google is a leader in absolutely nothing else, and in all others is not even second. All its services other than search are losing money and some are likely to result in serious blood loss owing to legal suits.

Well, may be they’ll make tons money in partnership with NASA while searching for extra-terrestrials…Mars dollars anyone?

How?

£1 will equal 3,000US dollars as the US plunges into its deepest recession yet with the dollar dying like a wounded cat.

Id start converting your US dollars now before you can’t buy a loaf of bread for less than $10,000.

A tech stock has plunged back to the levels of, err, 6 whole months ago. In a falling market.

Guess what – the price of shares can go down as well as up.

Try telling us something we don’t know.

On Fri i said it was going to high 300′ in 60 days and a couple of you laughed. Now this.

The fundamental problem is that the valuation of these companies is not supported by any ability to exit. At $2000, the market cap is $600B, there is no company that can buy Google at that price, therefore the price is unjustified.

It’s quite simple really, if you tell me you have something for sale at a price nobody can afford, its not worth it. Unless there is some hyper-inflation which takes hold or GOOG throws off enough cash on its own to support a LBO, it won’t get to $2,000.

Reading Blodgett is just too infuriating.

http://www.tech...iggest-company/

I used it as my own magazine cover 2.0 indicator to put a short on GOOG which has paid off handsomely. Thanks for providing the ultimate stock fade with techcrunch. I think I might get long some GOOG based on your post and cover my short although I’d feel better if it was Duncan who had posted it.

-mp