Val, been reading negative articles on GOOG.
For instance,
"Is Google the New Yahoo!?
By Rick Aristotle Munarriz February 28, 2008
When Google (Nasdaq: GOOG) gazes into the looking glass, does it see what it wants to see, or does it see Yahoo! (Nasdaq: YHOO) circa yesteryear?
The market is certainly wondering what became of Google's striking good looks. Its stock has plummeted by 37% since last year's peak. In market cap terms, Google's haircut amounts to roughly the size of two Yahoo!s.
The latest wrinkle came this week when trend-tracker comScore issued a sobering report, indicating that year-over-year clicks on Google's paid search ads -- the sponsored text spots that appear alongside relevant search queries -- fell in January.
It wasn't much of a dip at 0.3%, but Mr. Market isn't used to Google standing still, much less moving backward.
The comScore report is an incomplete measuring stick on many levels, but it doesn't take much for worrywarts to begin sweating under the suddenly claustrophobic sky.
You look nothing like your yearbook picture
It doesn't help that Google has let itself go in many other ways. Its employee headcount is growing quicker than its revenue. The company is in the process of throwing its hat into costly rings like wireless spectrum licenses, undersea network plumbing, and old-school advertising.
Analysts have also had their share of faith-rattling experiences with Big G. After consistently blowing past Wall Street's profit targets with ease, Google has come up short in two of the past three quarters. Forward estimates -- which used to tick higher with every passing report -- have ticked lower in recent months.
The upside for investors here is that the shares have tumbled a lot faster than the fundamentals. Consensus estimates find the pros expecting Google to earn $20.06 a share this year and $25.02 a share come 2009.
Trust me when I tell you that this is the first time that you have ever seen Google trading at less than 20 times next year's earnings. Really.
All statements are my own opinion, expressed by a relatively novice investor. Do your own due diligence & verify posted information.
