On the eve of Google's quarterly earnings release, an analyst (Ray Conley of Palo Alto Investors) got himself some video time by claiming that GOOG is worth 30 dollars, not the 300+ dollars at which it currently trades. Conley's points: Google is trying to be Microsoft; Google is not in a "monopoly business" like Microsoft; Google's margins are thinner than Microsoft's; it would take Google 15 years to reach Microsoft's operating level. Meanwhile, Stanford Research upgraded GOOG yesterday from Hold to Buy. On either side, nobody knows what the heck they're talking about.
1. Nobody on either side knows what they are talking about? First of all, the link to the rest of this so called "read" is a broken link, so good job there. Secondly, Google is performing the way it is because of internal business structuring and a very strong consumer backing, supporting both sides of Google, the saerch engine side and the advertising side using Google AdWords. Google is NOT trying to be the next Microsoft, but it is one of Microsoft's competitors, which are clearly two different scenarios. $30 per share? Clearly YOU have no idea what you are talking about.
Posted at 4:42AM on Dec 19th 2005 by James