Slashdot Mirror
Another Internet Stock Price Bubble Building?
Anonymous Coward writes "The Economist has a column looking at the valuations of some of the Internet's darlings, with a particular emphasis on Google. From the column: 'Valuations are, in fact, better founded than many of them used to be. But around 50 times next year's expected profits is still quite a leap of faith. At the levels seen in recent days, the price of Google's traded shares implies that it is the world's most valuable media company, with a market cap comfortably in excess of Time Warner's $76 billion, even though the latter had $42 billion in sales last year to Google's $3.2 billion. True, Time Warner's business is increasing at a snail's pace compared with Google's. But putting so high a price on future growth only makes sense if all's for the best in this best of all possible worlds. And it isn't.'"
Wow another scolding article about stock ... I don't know...
speculation. It's almost as if the stock
market were some sort of
speculation market where people not only
invest based on the valuation of a company,
but also based on the derivative of the
company's price (i.e., a guess that
prices will fall or rise).
I'm shocked, shocked that people chose
to invest based on derivation instead
of valuation. It's almost as if they
think the stock market is some sort of
free market for stocks or something.
*shudder*. It's a complete scandal, I
tell you.
I wouldn't put too much stock into Google. Not after watching how MSN Search is growing off on the horizon...
...the stock market will climb higher, and higher, and will never crash. You'd be crazy not to dump your entire life savings into the stock market in general and google in particular. We're all going to be rich!
Correction: Apple - greedy and condescendingly good...
Where's my free iPod!? Until then, I'll settle for a kiss...
Which in turn will cause ANOTHER real estate boom, since a whole bunch of prime oceanfront property just opened up. I'm prepping my house to go on the market as we speak!
people will type google.com on that search bar