Comments on: Supply Over Demand on Google's Stock http://battellemedia.com/archives/2007/04/supply_over_demand_on_googles_stock.php?utm_source=rss&utm_medium=rss&utm_campaign=supply_over_demand_on_googles_stock Thoughts on the intersection of search, media, technology, and more. Tue, 18 Jun 2013 07:17:00 +0000 hourly 1 http://wordpress.org/?v=3.4.1 By: sohbet http://battellemedia.com/archives/2007/04/supply_over_demand_on_googles_stock.php#comment-10933 sohbet Wed, 18 Apr 2007 09:21:49 +0000 http://battellemedia.com/archives/2007/04/supply_over_demand_on_googles_stock.php#comment-10933 <p>Hard for a stock to go up with those fundamentals, especially starting at 70x free-cash-flow.<br /> Cash Flow = turkish songer</p> Hard for a stock to go up with those fundamentals, especially starting at 70x free-cash-flow.
Cash Flow = turkish songer

]]> By: Thomas http://battellemedia.com/archives/2007/04/supply_over_demand_on_googles_stock.php#comment-10932 Thomas Fri, 13 Apr 2007 22:07:44 +0000 http://battellemedia.com/archives/2007/04/supply_over_demand_on_googles_stock.php#comment-10932 <p>The problem with google is it had 99% growth in the 3rd quarter. 99% growth, while wonderful in it's own regard, is bad when the 4th quarter rolls around and it is not showing more growth. You can't really do better than 99% growth. I believe (I don't have my numbers in front of my) that Google tripled earnings in the 4th quarter, but growth was around 60 or 70%? <br /> Unfortunetly for Google, the market wants continuing rising growth Since you can't really grow better than 99%, it is falling growth or receding growth. So the stock price fell upon the announcement of the 4th quarter earnings...</p> <p>Then when the Market Crash came late February, that threw a bunch of stocks prices into the toilet. The Dow lost all of the revenue it gained in 2007 on that one day. So the problems facing Google mentioned in the above article aren't really all that uncommon to a lot of stocks right now. Nor are they anything to be worried about. </p> The problem with google is it had 99% growth in the 3rd quarter. 99% growth, while wonderful in it’s own regard, is bad when the 4th quarter rolls around and it is not showing more growth. You can’t really do better than 99% growth. I believe (I don’t have my numbers in front of my) that Google tripled earnings in the 4th quarter, but growth was around 60 or 70%?
Unfortunetly for Google, the market wants continuing rising growth Since you can’t really grow better than 99%, it is falling growth or receding growth. So the stock price fell upon the announcement of the 4th quarter earnings…

Then when the Market Crash came late February, that threw a bunch of stocks prices into the toilet. The Dow lost all of the revenue it gained in 2007 on that one day. So the problems facing Google mentioned in the above article aren’t really all that uncommon to a lot of stocks right now. Nor are they anything to be worried about.

]]> By: Henry Blodget http://battellemedia.com/archives/2007/04/supply_over_demand_on_googles_stock.php#comment-10931 Henry Blodget Fri, 13 Apr 2007 17:09:00 +0000 http://battellemedia.com/archives/2007/04/supply_over_demand_on_googles_stock.php#comment-10931 <p>Google's margins are compressing, revenue is decelerating, and free cash flow is stagnant (at least through last quarter). Hard for a stock to go up with those fundamentals, especially starting at 70x free-cash-flow.</p> Google’s margins are compressing, revenue is decelerating, and free cash flow is stagnant (at least through last quarter). Hard for a stock to go up with those fundamentals, especially starting at 70x free-cash-flow.

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