rest of the shares will be released next week.....what do you think? price will fall? rise?

 

I really like what Google does for the Internet, but it seems like their shares are overpriced right now. I think share prices will drop just because of the whole supply/demand issue, but this is just a semi-educated guess. I still have lots to learn about the markets.

 

that's what everybody says but everytime they say that the stock goes up. Google has HUGE HUGE potentional......just wish i could bought the IPO

 

See, that's the thing I am not good at judging properly - a company's potential. Google keeps coming out with tools that enhance the internet, but in the end I am curious where they will generate funds from besides advertising. I suppose they can have a biz plan that includes acquiring other companies with nnon-advertising revenue, but we are talking longer term. One thing Google has it great brand recognition, which the market LOVES.

 

Google also makes a shitload on advertising...I think, long-term, it'll hold it's value well.

 

I suppose we can compare Google to other companies like Yahoo and such, although I think Google brings more to the table than Yahoo does.

 

google's product offereing in this market is revenue generation. The time is right and that's why they are doing so well and why people like it so much. Brand freshness and recognition also contribute.

 

Agreed.

 

Right, they are actually making money, not like an Amazon that the market though *might* be able to make money. In today's internet age, they bring a lot to the table and provide real services that people can and will actually use, which means chances to generate cash.

 

You must be thinking about a different Amazon. AMZN seems to be making a lot more money than Google.

AMZN

 

Amazon is making money NOW...but they were in deep kimchee after the novelty wore off...about a year or so after the IPO. They cut a lot of costs, trimmed a lot of fat and raised prices to turn a profit.

 

Amazon, like most dotcom era stocks, came public long before they were profitable. They were quite open about the fact that they expected it to take a long time to get profitable and they were right. Google took a lot longer to come public because these days you can't come out unless you're already on your way to good profitability.

The big question about Google is how much can they continue to grow, and how fast. They won't provide any estimates, or even share any kind of business plan, which means that any estimates out there are largely guesswork based on what we think they might do and how profitable we can guess it might be and for how long. Nobody knows the answer to those questions, but at current price levels, the stock seems to be reflecting an expectation for long term growth at rates that no company in history has ever achieved.

Not to say it won't go higher, but there are formidable obstacles to it staying here, just as there were for "Amazon $400."

Personally I've traded it quite well recently, in both directions. But I sure wouldn't be making much of a long term bet at current prices. Feel much the same way about YHOO, BTW.

 

No, my point was when Amazon first came into business, they were in the red and their high stock price was based almost solely on future earnings and potential cash flows.

 

Agreed.