Not Even a Fool Would Buy Google Stock in 2007

4 comments

The financial advice site Motley Fool calls Google The Worst Stock for 2007

When a company trades at such a high multiple to its earnings, the market expects tremendous future growth to justify that premium valuation. Google's past growth has been absolutely phenomenal, yet the future is only going to get tougher.

and

With more than $9.3 billion in trailing revenues, every percentage point in growth requires more than $93 million in incremental revenue. That's new business that must be generated while the company maintains its dominant position in its existing operations. With so much of its revenue tethered to the ever-fickle advertising market, that's an exceptionally difficult proposition.

hat tip to DG

Comments

So buy put options, Michael

The problem with bubbles is that it's hard to predict when they will pop. You could be absolutely right, but still lose your shirt, pants and socks by betting on a price correction.

law of averages

If all these "experts" keep predicting google stock will fall every time they make a prediction eventually they will be right.

I predict someday google stock will go up and some day it will go down.

>Not Even a Fool Would Buy

>Not Even a Fool Would Buy Google Stock in 2007

My degree was in Commerce & Economics, so I had my nose rubbed into high P/E ratios long enough to instill a strong recoil reflex. Per my conditioning, I know I said something like "Not Even a Fool Would Buy Google Stock in 2006" --and, sadly, I listened to me.

>>a strong recoil

>>a strong recoil reflex

Yeah, it's real hard to pull the trigger after you've had your butt kicked a couple of times.

I too, listened to me :(

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