Google loses status as premium-priced Web stock
Google has lost about a quarter of its value this month. It's likely to keep falling. Now would be a good time to sell. I would buy at about $330. If the stock falls to that level, I will probably buy a couple shares.
Some analysts said Google might fall to a base level as low as $330. I don't see how these people could know anything. The stock price also isn't very correlated to how well the company's doing.
Henry Blodget says: "These are the times that actual investors live for: Panics and pile-ons in which, fundamentally, not much has changed, but, psychologically, everything has changed."
Google's competition has grown, certainly, but Google also has a sustainable business and a monopoly over web search and advertising.
"If paid search isn't broken -- and Google is the leader -- and Web advertising isn't broken -- and it's growing faster than traditional ads -- then you have a hard time arguing Google merits less than a 30 times P/E multiple," Rohan said.
Martin Pyykkonen thinks the stock has fallen because short-term investors have cleared out, leaving a stable class of investors who will hold it long-term. I would buy it for the long term. Save it for the next 10 years, sell it after I'm out of college.
Rohan's biggest concern is what impact the sudden deceleration in the value of Google's shares may have on employee morale at the company over the long run. Google's stock is down 27 percent from last month's highs after closing off $16.91, or 4.7 percent on the day, at $345.70 on Monday on Nasdaq. Nonetheless, the stock has only fallen back to levels it first hit four months ago. The IPO was $85. The price is still high.
Some analysts said Google might fall to a base level as low as $330. I don't see how these people could know anything. The stock price also isn't very correlated to how well the company's doing.
Henry Blodget says: "These are the times that actual investors live for: Panics and pile-ons in which, fundamentally, not much has changed, but, psychologically, everything has changed."
Google's competition has grown, certainly, but Google also has a sustainable business and a monopoly over web search and advertising.
"If paid search isn't broken -- and Google is the leader -- and Web advertising isn't broken -- and it's growing faster than traditional ads -- then you have a hard time arguing Google merits less than a 30 times P/E multiple," Rohan said.
Martin Pyykkonen thinks the stock has fallen because short-term investors have cleared out, leaving a stable class of investors who will hold it long-term. I would buy it for the long term. Save it for the next 10 years, sell it after I'm out of college.
Rohan's biggest concern is what impact the sudden deceleration in the value of Google's shares may have on employee morale at the company over the long run. Google's stock is down 27 percent from last month's highs after closing off $16.91, or 4.7 percent on the day, at $345.70 on Monday on Nasdaq. Nonetheless, the stock has only fallen back to levels it first hit four months ago. The IPO was $85. The price is still high.
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