Reuters broadcasted
that Google face more than a 50% decline in share price. Google's top share price hit $475.11, and is now down to
$37.48, down $15.13. Today's trading range was in the 341.89 - 350.60 area. But look at the stats for the past 52
weeks: 172.57-475.11. That’s quite a huge jump in the past year. There is word that Google's
top line growth may have been hit by Yahoo, and Microsoft. Even with their ferocious expansion into many new
areas.With all the hiring that went on last year, Google has been issuing lots of restrictions on stock and options. Google's present head count has more than 5680 professionals on their payroll.
88% of Google's sales, minus costs, add to the company's bottom line, slower top-line growth would cut into Google's earnings per share and make its stock more expensive on a relative basis, according to a Barron's Report.
Fans of Google are insisting that GOOG is headed to $500, and maybe even $2000! However with the list of growing challenges and obstacles that Google is facing lately with Book Publishers, and Newspapers, it seems like they may have their work cut out for them on heightening the price of GOOG.
Over the next few years, both Yahoo and MSN's portals are expected to greatly improve their search offerings so that search engine ads are more relevant to search results, and are therefore more likely to be clicked.
1. Early 2005 my good friend told me to buy as much Google stock as I possible could afford. I kept putting it off for months to come and by the end of 2005 it was over $400 per share. I was a fool for not listening. I never did buy any stock but I hear that Yahoo is going to go up a good amount in several months.
Posted at 9:23PM on Feb 13th 2006 by joejoe