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    Google is now the biggest Internet company!


    NEW YORK, Feb 2 (Reuters) - Google Inc. ((GOOG.O)) overtook eBay Inc. as the biggest Internet company in terms of stock market value on Wednesday after posting strong quarterly earnings, but some investors remain leery of whether the shares are worth the price.

    Google, the leading Web search company, now has a stock market value of about $56 billion, making it almost as large as media conglomerate Walt Disney Co. and bigger than industrial stalwarts General Motors Corp. and Alcoa combined.

    eBay, by comparison, has a stock market value of about $52 billion after its stock sank recently when the online marketplace failed to top Wall Street's lofty profit estimates and 2005 forecasts.

    Shares of Google rose as high as $216.80, a new record, before settling back to close on Nasdaq at $205.96, a 7.3 percent gain for the day.

    Several industry analysts raised their price targets on Google, with ThinkEquity analyst John Tinker expecting shares to hit $290 within 12 months. But some money managers said that while Google's profit and revenue gains are impressive, the stock is much too expensive for their tastes.

    "Frankly looking at Google from a value orientation is about impossible," said Brian Barish, president of investment firm Cambiar Investors, which has about $3.6 billion under management.

    "There are some situations where you say that's just too rich for my blood," he said. "That's the situation we find ourselves in with Google."

    Google has a price-to-earnings ratio of just over 60 based on full-year 2005 net earnings estimates, more than three times that of the components of the Standard & Poor's 500 index.

    Michael Sutton, chief investment officer at Liberty Ridge Capital, a money management firm that owns Google shares, said the stock is still a must-own in the Internet sector despite its lofty valuation.

    "If you're going to buy Yahoo, Google, eBay, you're probably not too valuation sensitive," said Sutton, whose firm manages about $3.5 billion. "You just recognize the magnitude of the opportunity that these companies have."

    Google, which went public in mid-August, soared past analyst forecasts on Tuesday with fourth-quarter earnings that were seven times higher than year-earlier results.

    Internet advertising fuels virtually all of the company's revenue. A forecast by research firm TNS Media Intelligence/CMR released on Wednesday called for online advertising to rise 11 percent this year, a much faster rate than that expected from traditional network television, radio and newspapers.

    Google options volume was intense on Wednesday.

    "The reason behind it is the outlandish move in the stock today. It is a combination of short covering and true believers buying call options on the belief that Google will continue to amaze and reward," said Jon Najarian, chief market strategist at PTI Securities.com, an online options and securities firm in Chicago.

    An equity call gives the buyer the right to buy the stock at a predetermined price within a set period of time.

    Zachary Karabell, a portfolio manager at Fred Alger Management, which invests in Google stock, said that the company is going to trade at a higher valuation than most other stocks because of its fast growth. The company on Tuesday posted fourth-quarter revenue that more than doubled to more than $1 billion, well above analysts' targets.

    Still, he said, investors should not ignore valuation altogether, he said. "To Google's credit, they have delivered results in excess of what people were expecting." Karabell said. But, referring to the valuation debate, "I don't expect this question to go away," he said.
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  3. I <3 Google
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    I bet microsoft is ****ting their pants right now for sleeping on this years ago
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    Originally Posted by yo-yo
    I bet microsoft is ****ting their pants right now for sleeping on this years ago
    Ohh definetly - I agree....

    Google's agreesiveness is getting remarkable...

    I don't care what Microsoft comes out with, they'll always be three steps behind Google...
    -
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    Originally Posted by yo-yo
    I bet microsoft is ****ting their pants right now for sleeping on this years ago
    I dunno, MS has always been very good at playing catchup...

    Regards, S
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    Exclamation Not even the Roman Empire stayed on top!


    One must not forget that to the consumer google.com is only one white web page with a logo, a search box and a couple of links.

    Google has to serve the best search results or else the consumer goes away.

    It's like any other product or service - consumers are very sensative, if MSN serves better search results one can expect to see a sudden change overnight.
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    Originally Posted by LifeAfterGoogle
    One must not forget that to the consumer google.com is only one white web page with a logo, a search box and a couple of links.

    Google has to serve the best search results or else the consumer goes away.
    This is far from the truth. Google not only provides searching, but a plethora of items such as Google Labs, image and television searching, groups, news, aswell as not to mention Gmail (though not as widely known as the home page it provides consumer attention none the less). Were Google to cease the search sector of their department today they'd fall quite a bit down, but still be standing.
    Last edited by MaxM; Feb 3rd, 2005 at 12:10 PM.
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    Originally Posted by MaxM
    This is far from the truth. Google not only provides searching, but a plethora of items such as Google Labs, image and television searching, groups, news, aswell as not to mention Gmail (though not as widely known as the home page it provides consumer attention none the less). Were Google to cease the search sector of their department today they'd fall quite a bit down, but still be standing.
    This is the truth. I am a very savvy internet user and developer and I barely ever use anything besides search. I go to Yahoo for news because I don't have to read a scrambled page with random news everywhere, Yahoo has some good stuff right on the front. Image, TV, google labs, give me a break, no average person is using that on a consistent basis. Gmail is the only other thing I use consistently only because I needed some anonymous email stuff, but still I have more Yahoo accounts than Gmail accounts.

    Oh, did you forget Yahoo has games that thousands and thousands play, music stations, movie reviews, a huge finance section. If I had an online account for stock trading I would have shorted GOOG when I noticed it at $215.

    If they don't provide the best result people will leave. It may take some longer than others, but when the next little search phenom presents itself or Yahoo and MSN step it up, say goodbye to google market share. I would say they've reached their max, just IPO'd, library stuff press, this market cap cannot last.
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  15. I <3 Google
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    Originally Posted by MaxM
    Were Google to cease the search sector of their department today they'd fall quite a bit down, but still be standing.
    LoL... you do realise 99% of googles income comes from the ads in their search results....
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    Originally Posted by hdpt00
    This is the truth. I am a very savvy internet user and developer and I barely ever use anything besides search. I go [on and on]...
    While you may follow a strict regimine of strictly visiting their search and not taking advantage of their other features, you're not the only one on this internet. As I said, Google as a company would not completely die with the lose of their search. They're as good as dead, but they've diversified themselves to a point now where they'll still stand.

    Originally Posted by yo-yo
    LoL... you do realise 99% of googles income comes from the ads in their search results....
    99% is a wild and rough estimate that's rather quite far from a number placable on their tax ID form. Were they to loose ads in their search results then as I've reiterated several times, they'd take a massive blow yet still stand being Google isn't just a search engine anymore.
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    Originally Posted by MaxM
    While you may follow a strict regimine of strictly visiting their search and not taking advantage of their other features, you're not the only one on this internet. As I said, Google as a company would not completely die with the lose of their search. They're as good as dead, but they've diversified themselves to a point now where they'll still stand.

    99% is a wild and rough estimate that's rather quite far from a number placable on their tax ID form. Were they to loose ads in their search results then as I've reiterated several times, they'd take a massive blow yet still stand being Google isn't just a search engine anymore.
    If they lost search they would just be an advertising company. While you may feel people use things on google besides search, I would guess 99.9% of the internet does not. Furthermore, I highly doubt gmail is very profitable if at all, same goes for everything else besides search.

    If they lose search it is over, plain and simple. Defend them as you will, but you're wrong. Once search goes they are an advertising company. If search goes it is a sign people lost faith in them and no longer trust google, price on ads will go down. Now they are a small advertising company with some rich founders. Good for the founders, bad for people who rely on google.

    Now are they going to lose search anytime soon? No. But they are not even close to highly diversified yet. A million steps behind Yahoo.
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    Yahoo has a huge advantage because its owned by SBC, who just bought AT&T. Thats a lot of back end capital and assests to play with. If it comes down to throwing money around....



    Sandhurst Las Vegas | Liberty Tower Las Vegas | The District | Boca Raton Las Vegas
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    I didn't say they were highly diversified, but diversified enough to a point where they would stand be it with a gimped leg and missing eye, but stand none the less. You seem to of misinterpreted my saying they'd still be around without search as they'd still be where they're at which of course they wouldn't.

    Google is reaching a point where they'll meet Yahoo's diversification and soar beyond it whether you favor them or not. With Gmail, their project with Firefox and M$ coders, Desktop, the list goes on. That extra stuff that Yahoo has now is being checked by Google-user groups, email, hosting...

    Originally Posted by hdpt00
    If they lost search they would just be an advertising company.
    If they lost search they would still have everything but search going for them. If anything, they'd loose their foot hole in the advertising game. Google without search would become a developer, email provider, domain registar, and some. They've not even emphasized the features newly released yet and you better count on them doing so if they lost search.
    Last edited by MaxM; Feb 3rd, 2005 at 06:03 PM.
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    A domain registar and email provider and even a developer oh my! I bet there are some huge margins in domain registars and email providers. And developers, what are they going to develop if they lose search? Are they going to develop a way to afford developers developing stuff? Search is it. I would much rather be Yahoo than Google. Yahoo has people, they've been at their lows. They have people who come by, play games, shop, look up stock quotes, read news, all on their sever. They are retaining people while all google does is send them off to do their thing.
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    Gmail also there are advertising there Adwords.. this is the heights .... a person goes to check his/her mails ..... and they also find a Adword link in the right side... based on the theme of the mail....

    G can go that far for earning money.... banners are fine but adwords....

    Poor Google... all it think is money ... all the time
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    Isn't what you think all the time too? Maybe you should become pro-bono and do you work for free?

    Originally Posted by lucksin
    Gmail also there are advertising there Adwords.. this is the heights .... a person goes to check his/her mails ..... and they also find a Adword link in the right side... based on the theme of the mail....


    G can go that far for earning money.... banners are fine but adwords....

    Poor Google... all it think is money ... all the time
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