View Full Version : Google and the stock market

12-19-2006, 05:55 PM
As a teenager I was crazy about the stock market (yea unusual hobby;)) and I had the luck of making a lot of money (for a teenager) b/c I thought the internet was such a great thing to invest and jumped on the bandwagon of internet shares (which was more luck than skill i have to admit) etc.

Now, one thing that I'm wondering since I've been learning about search:

In the stock market shares dont really represent the real present value of a company, but umm say..the value multiplied by a factor that represents the potential (as assessed by the large crowd of investors).

I dont wanna ramble too much about this, but what Im thinking is this:

I'm wondering if most investors really understand just how powerful Google is and how much more powerful it might be in the future. I mean....everybody talks about branding and word of mouth..Google gets his own word into the GERMAN language (most ppl here say they 'googled' not they searched)...I mean Google controls the net and is becoming more and more powerful (maybe im exaggerating now?)...to me it seems as if Google was far from finished...growing...

and Im wondering if it'd be smart to invest in them (long-term), b/c i assume most ppl (who dont have a job in this field including many analysts and fund managers most of who should stop giving advice as they dont even beat the index anyways) have absolutely no idea what a crazy thing this Google company is...not only do they have their company name listed as an OFFICIAL word in the German language, I also read this posto n here by somebody saying something along the lines 'Google has become more than a company it seems to be almost a religion these days'

I typed in Google and analysts (in Google ;)) and the first news i see is that analysts underestimated Google's profits...

So well im really wondering if I should invest an affordable sum into Google shares and really think long-term as in years to come..b/c I assume most ppl outside of this industry just consider Google a big company, but have no idea just how crazy this company is and how much potential for growth it still has (i read somewhere on these forums that Google was still only making (tons of) money with advertisments...but that they were trying to move on to bigger things...I mean before I started reading about search and internet marketing I really thought of Google as a big internet company, but after knowing how they almost control search and how they do things like have their companies name branded in our language, Ill never look at it the same..

But on the other hand I really dont know that much about Google, I just think the large crowd is most likey underestimating its room for growth and its monopol-like position..and thats what the stock market is all about exploiting inefficiencies...

but anyways chances are I will not invest in them, but i was really wondering what you think about G's room for growth and potential business-wise!

01-01-2007, 07:02 PM
This used to be a fun hobby for many - to the point of addiction. Investing in stocks! Then, investing in tech stocks! Then, investing in Internet "bubble" stocks. Then, investing in "IPO's of Internet bubble stocks".

Remember Motley Fool? Silicon Investor? Raging Bull?

If not, then you really are a New Kid on the Block.

Anyway: GOOG's stock price is healthy. I doubt anyone on a general forum like this would care much whether you bought 50 shares of Google or not. It would be like someone on a running shoe forum caring if you bought stock in Nike.

Basically, if you start calling yourself an investor, expect to spend time watching the ticker, reading annual reports, and assessing increasingly exotic metrics of technical and fundamental company performance. That's a valuable way to spend your time, if you don't need that time for anything else.

Buying a few shares of the most recognized online brand in the world shouldn't be confused with "investing" in any sense, however.