I'm not even long on google anymore but Jesus Christ, what a pile of crap!
Fierce competition from MSN and Yahoo in search? I guess the article was written before Nielson came out with the 4th quarter results. Google took ANOTHER 5.7% market share from the "feirce competitors" they have already beaten to a pulp.
Again and as always it boils down to "google is too expensive because it has too high a PE".
That might be an observation but it isn't an analysis.
Google even at the newly reduced numbers is growing over %80 YOY. THat means you should be able to pay up to a 160 PE and still feel comfortable.
I hope to hell this article does push google under 350$ on Manday. It would finally be worth my while to load up again.
Anyone who thinks an 80% grower should trade at a 20 or 30 PE is crazy. What would a 15% grower trade at? 1?
He was talking about year over year growth by the way. The "gridlock" in earnings during the 4 quarters of 2005 is partly due to the lumpiness of their income tax rates (not just the suprise of the last quarter). The rates for 2005 were:
I have no idea why the anomaly in Q1. But I think lumpiness is going to be a fact of financial life for this company. They themselves have said this and I think it reflects the growth model of the company. It is unfortunate that have to do things on a quarterly basis.
"Google's earnings numbers for the past 4 quarters:
Q4 2005 372M
Q3 2005 381M
Q2 2005 343M
Q1 2005 369M
Four quarters in gridlock.
No matter how smart you are, without the data you're going to make big mistakes."
Here is the net income numbers from 2003
Q4 2005 27.2 M
Q3 2005 20.4 M
Q2 2005 32.1 M
Q1 2005 25.8 M
I gues you would have assumed it was "four quarters of gridlock" back in 2003 too, right?
Your imaganary bank probly is happy with you post youe gains keeper sheet if you are not full of it!
all you owned was 100 shares?
you are not even worth the crap off their toilet paper yet you think they call you sir?
lol they laugh when you turn your back.
my 2500 shares sure made my bank happy when i cashed in my ipo shares at 433!!!!!!!!!!!!!
2002 - $439.5 million 409% yoy growth
2003 - $1.465 billion 234% yoy growth
2004 - $3.180 billion 118% yoy growth
2005 - $6.139 billion 92% yoy growth
Income from Operations
2002 - $186 million
2003 - $342 million
2004 - $640 million
2005 - $2 billion (even with $90 to charity)
>>Good old Barron's had a similar article on Ebay, Amazon and Yahoo in April of 2003. All companies went UP nicely after the article. Bless you Barrons. Link is below.
GREAT POST by others