GOOG Cheap?

Posted: May 29, 2007 in Uncategorized
Not sure if anyone has noticed, but there’s been a slow but steady stream of GOOG analysts commenting on — gasp — how cheap GOOG stock is… that GOOG has been effectively trading sideways since Jan 2006 (with a lot of high’s and low’s in-between). 
 
 
My take:  I think the optics of being a $400-$500 stock are hurting GOOG right now.
 
If GOOG was trading at $50 today, would anyone even blink if it went to $60 or $70?  Not with its growth rates.
 
On the other hand, a leap from $500 to $600 or $700 seems massive.
 
I used to hate the fact that GOOG never split.  But then I changed my mind:  I thought it was brilliant up to $1,000 because each century mark GOOG breaks up to $1,000 brings a flood of new press.  (Past $1,000, that’s a different story… going from $500 to $600 is a big thing… but going from $1,000 to $1,100 really isn’t.)
 
Now, well, I may re-think my re-think.
 
In any event, after years of people screaming how expensive GOOG is, this is certainly an interesting turn.  GOOG has been held down by optics so long that maybe it’s finally time for it to pop with a vengeance?
Advertisements

Comments are closed.