Google Stock in 2007, Not Even for Fools
Earlier this week I wrote that it was going to be economy that’ll stop Google’s growth in 2007. Now, it is The Motley Fool which claims that The Worst Stock for 2007: Google.
According to “The Fool” Google market cap is way above and beyond it’s earnings and predictions of tougher competition ahead may be limiting it’s growth:
Unfortunately, I’m not the only one who has been bitten by the Google bug. Judging from its $142 billion market cap, in spite of a mere $2.4 billion in trailing earnings, much of Wall Street is enamored with the search engine, too. And that’s a problem. 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.
Personally, all I know about the stock market, I’ve learned from my Finance professor, but I still wouldn’t buy Google stock. Off course, I also said that when GOOG cost only $250, so I am not the best example… How about you, would you buy GOOG right in 2007?














