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Google Goes Public at $85/share

Posted by michael on from the buckle-your-seatbelts dept.

adpowers writes "It is official. Google will have its IPO debut at $85 per share. To quote the article, 'At that price, the low end of its recently revised range, Google raised $1.67 billion, with $1.2 billion to go to the No. 1 Internet search engine and $473 million to Google executives and investors selling their shares.' Trading begins Thursday, August 19th." Got Google?

2 of 343 comments (clear)

  1. Some analysis by Deag · · Score: 5, Informative

    The Economist has a good article giving analysis of the IPO.

  2. Re:Bit expensive, isn't it? by gbjbaanb · · Score: 5, Informative

    oh yes, it is an incredibly expensive share - current sales are about $268 million, and it's currently selling shares that value the company at $23 billion. That makes a P/E of 85, which is a teeny bit over-optimistic.

    Like, most shares trade at about 15-20 times earnings.

    Which means, as you own a little bit of the company, it'll take you 85 years before the company has sold as much ads as you paid, which manke syou think of those terribly overpriced tech boom stocks. Remember when Yahoo had a P/E of 133, with almost no profits? What is it today?...

    Unfortunately, there's no data about Google's financials published yet, so you can only speculate on what the price will end up as - but if you base the share price on earnings, you'll get the idea that it can only go down. (which is another reason why this dutch-IPO hasn't gone down well, the professional investors think its overpriced too).