Google Stock Question

marla · #1 (**permalink**) 07-27-2004, 12:42 AM

Please bear with me again on these financial questions.

Is it worth purchasing Google stock? I just read that it will cost over $100 a share which seems very expensive to me. I do use their search engine all the time and like it much better than all the others. How can you tell the correct price for a stock like this?

terry1156 · #2 (**permalink**) 07-27-2004, 04:08 AM

No, it is not. There are a lot of arguments that could be made either way, but if you want to purchase a stock, you want to purchase one you are familiar with and is priced decently. There is a lot of hype with the google stock and it is priced very high. My advice would be to avoid it.

terry1156 · #3 (**permalink**) 07-31-2004, 06:11 PM

Even though I don't think it is a good idea, those that are interested, the site to bid on the stock has opened for business. You can make your bids at ipo.google.com

mbhunter · #4 (**permalink**) 08-09-2004, 09:09 PM

By one count I found (searching on Google of all things!) the price to earnings (P/E) ratio would be close to 200 (that's not a typo) if the stock fetched what they're asking. This is ridiculously expensive. Better numbers for this ratio are about 10. They're definitely aiming for dot.com bubble prices well after the bubble burst.

I'm not a financial advisor, but I wouldn't touch this one out of the gate with a 10' pole!

John Wedding