How the hell is google's stock worth $187?

[kuozzman]

I know it gets used a lot, but how is it worth so much money???

[DrGonzoLives]

1. Hype

It will fall, and quickly, soon. If you own it, sell it.

[progressiveBadger]

2. I was wondering the same thing.

I mean, how much revenue can they possibly have?

[BlueEyedSon]

4. GOOG P/E = 225, S&P 500 P/E = 20 (which is high, historically)

[BlueEyedSon]

3. Just 'cause that's the PRICE, doesn't mean its WORTH that.

[HughBeaumont]

5. Puts, puts puts!

Seriously.

[jdots]

6. Global Crossing and Enron stock were worth tons $$$$

for the (right) people. I don't get it , why is it 187$

[LastLiberal in PalmSprings]

7. The band wagon effect

"It must be a good buy because look at all the people buying it."

Jump on the band wagon before it's too late.

[KurtNYC]

8. Hype is the word

Here are some excerpts from the 60 Minutes story:

Google engineer Alan Eustace explains, "One of the ideas that we’re working on is machine translation. We strongly believe that there’s enough data on the Web and in the world right now to allow us to automatically translate from one language to another."

Isn't that what Babelfish does? But wait, there's more innovation...

"I think it could be summed up in, 'search will no longer live only on your PC,'" says Battelle, when asked to speculate on what the next big breakthrough might be. Google is already moving that way, testing a new product that allows people to send short text messages from their cellphones and get an immediate reply to the search.

Ahh, yes, the Blackberry. They will be innovating that too. ;-)

http://www.cbsnews.com/stories/2004/12/30/60minutes/main664063.shtml

Bottom line: Google looks dead in the water. Take the $187

[Kingshakabobo]

9. P.T. Barnum n/t

[unblock]

10. google ain't no amazon

amazon and other internet stock prices went bananas because there was far too much money chasing too little product, and every internet hope was awash in investment cash. eventually people realized that it's difficult to monetize many internet ideas, and the dot-com craze became the dot-bomb bust.

google, however, has a solid revenue model and is firmly established as a widely used tool.

having said that, i can't quantify the value, and $187 may well be too high. but at least, this company is not like the many dot-bombs of the late 1990's.

my main concern as an investor would be the single-product risk. someone could come out with a better search engine and/or information hunt facility and google could vaporize very quickly.

[newportdadde]

11. Its worth more then GM I believe if you looking at market cap. lol

But its an overpriced POS in my opinion

[LiberallyInclined]

12. it isn't.

but some people are apparently willing to spend that much, and there is an official term for them-

suckers.

[newyawker99]

13. Hi LiberallyInclined!!

Welcome to DU!! :toast:

[DrWeird]

14. cause it's 187

on a muthafuckin' cop?

[OneTwentyoNine]

15. Wait till Valentines Day.....

It might be a massacre when the employee's of the company are allowed to sell their stock at will. Me thinks there will be plenty of profit taking on that day.

If I owned Google I'd be watching carefully.