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Will You Buy Google?

GOOGLE GOES LOW

Google said Wednesday it will go public at $85 a share, paving the way for the
widely awaited but troubled stock offering to finally stumble to market on
Thursday.
Ref. https://money.cnn.com/2004/08/18/technology...leipo/index.htm

Google Buy Will

Not at that price! How ridiculous. A lot of people will lose their shirts if they invest at such a high price. It will rise probably in the beginning, but it will fall to where people are willing to actually buy.

In my opinion, of course.
Roz

Will You Buy Google? History & Civil Business Politics

Google's high PE requires unsustainable growth rate
By Mark Hulbert, CBS.MarketWatch.com
Last Update: 12:01 AM ET Aug 13, 2004

ANNANDALE, Va. (CBS.MW) -- Here's yet another question to ask yourself before placing bids for Google shares in their Dutch auction that starts today:

How far and how fast must the firm's earnings grow in order to support its sky-high valuation?

Those of you who haven't registered to be a bidder in that auction can follow along, substituting for Google any of the other stocks whose current p/e ratios are high enough to be in the 154-192 range. That's what the Wall Street Journal is reporting Google's p/e will be if its initial offering price falls in the $108 to $135 range that the company has indicated.

It turns out that stocks bought when their p/e ratios are this high hardly ever have provided an attractive long-term return.

Nor should this come as a surprise, since it's a matter of simple mathematics.
Link to CNN story

Google Buy Will

My understanding was that the IPO of Google stock was set that high to prevent investors from buying large amounts of the stock. The owners wanted everyone to be able to invest by buying smaller sets of shares. This could be achieved using a higher price. Even though they will become millionaires from going public with Google, it seems that was not their original intent.