Slashdot Mirror

← Back to Stories (view on slashdot.org)

Google Sets IPO Pricing

Posted by Hemos on from the dear-lord dept.

It appears that Google has set their IPO price - 108$ - 135$ per share. Yowza. A reminder that this is done through the Dutch Auction ? process, which makes that pricing even more...uh...interesting.

4 of 466 comments (clear)

  1. Web index as revenue generator by manmanic · · Score: 5, Insightful
    I think it's a fair price. It reflects the money Google will make in future from selling access to their web index and associated technology - a market that they haven't even begun to seriously develop. The Internet is going to be around for ever, and its content is going to keep growing exponentially until this scary vision is fulfilled. Google's search results represent (to date) the best attempt to organize this information in an intuitive user-centric way.

    In fact, they already provide programmatic access to their results via the Web APIs, spawning services ranging from a recipe generator to a site for detecting online plagiarism. According to this story, the developers of Google Alert, one well-known APIs application, have recently been granted permission to commercialize their service. My guess is that it won't be long before there are many more 3rd party Google applications, bringing in a lot of new money to Google's coffers. Anyone for a BUY rating?

  2. A bit steep for my tastes by Anonymous Coward · · Score: 5, Insightful

    Seeing as Google is everyones darling child now, and they have had much coverage over their cool technologies and decent methods of doing business, it looks to me like a bad buy. In other words, the price can only go down.

    IANAstockbroker, and i have no money to buy stock anyway.

  3. Re:Investors or the public? by Dr.+Bent · · Score: 5, Insightful

    I am still keeping my fingers crossed that they can remain faithful to their customers

    Oh, you mean the people who advertise on google? Yeah, I think they'll do a good job of keeping those people happy. But people who use google's search engine just to find stuff are not customers...they're the product. Google main business is not selling search results, it's selling eyeballs. Just like any other media company (television, radio, etc...) who's job is to sell advertising, google's customers are the people who pay for advertising. When you start paying google to do a search, then you'll be a google customer...until you're the product.

  4. PE (Price/Earnings ratio) is the number to look at by gtoomey · · Score: 5, Insightful
    With second quarter earning of $78M, and a projected market cap of $36B, the PE is 36000/(78*4)=115.

    With a PE of 115 Google is an expensive stock & I guarantee Warren Buffet won't be buying at the price. By comparison banking stocks have PEs generally under 20.

    Analysts (and I use the term loosely) try to spin these high PEs by claiming there will be high growth, and using Price Earnings Growth (PEG) models.

    I won't be buying at that price.