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Google IPO

asked 1 year ago
here’s the story:
http://cbs.marketwatch.com/news/story.asp?guid=%7B01DBE7A4-4DEA-4A48-88CC-519416ADE90E%7D&siteid=google&dist=google

here’s a quote:
Last year, it rang up a profit of $105.5 million on revenue of $961.8 million, according to IPO papers filed with the Securities and Exchange Commission. Cash generated from operating activities totaled $395.4 million.

here’s a question:
Does anyone know what % of that $395.4 million was generated by gambling terms? I wonder if it will affect the stock price when that revenue is gone? Seems to me even with new offerings, next year they won’t be as profitable from operations alone as they were last.

13 Answers
MarinersFan answered 1 year ago
The Google IPO will prove the old saying that IPO stands for “It’s Probably Overpriced.”

If you are thinking about buying any Google stock, wait for the dust to settle after all the suckers jump in and get burned when the stock price comes crashing back down.

Also, those of us on this forum know something that most investors do not know and that is that Google lost a tremendous amount of market share when Yahoo dropped them this year.

So while Google is a great company and it will be the biggest IPO in history, it is NOT a good investment. At least not until the stock price drops back to the offering price.

Just my 2.5 cents …

antoine answered 1 year ago
The only people who earn money from an IPO are the underwriters of it. If you want to buy the stock wait a week or two. I’m not quite sure what the advantage of buying google would be anyway. They’ve all ready experienced all the growth that they can, from now on it’s simply the market shrinking with increasing pressure from yahoo and msn.

Am I not the only one who finds it coincidental that the IPO was announced nearly simultaneously with the demise of the pharmacy and gambling ads? If the gambling ads were removed solely from political pressure than they would still enable you to target non-usa countries.

MarinersFan answered 1 year ago

Originally posted by antoine
The only people who earn money from an IPO are the underwriters of it. If you want to buy the stock wait a week or two. I’m not quite sure what the advantage of buying google would be anyway. They’ve all ready experienced all the growth that they can, from now on it’s simply the market shrinking with increasing pressure from yahoo and msn.

Am I not the only one who finds it coincidental that the IPO was announced nearly simultaneously with the demise of the pharmacy and gambling ads? If the gambling ads were removed solely from political pressure than they would still enable you to target non-usa countries.

You got that right! Google is going public while their balance sheet and P&L shows MAXIMUM income! It’s all downhill from here.

Talk Casinos answered 1 year ago
OK I will be the Optimist

Yes I agree all down hill (their business Model, as we know it now)

But maybe not the stock price.

Google has played the press well.

The market is all about hype and Google has plenty of it more so than EBAY when they went public.

It might be a good one to ride short term if you’re a gambling man.
It will be quite some time before the revenue will be comparable to last quarter

(In the long term look)
Once they have the revenue from the investors, who knows what they will come up with next (with their business Model)

My 2.4 cents
Brad

antoine answered 1 year ago
I have no doubt that it will initially go up, it’ll probably triple. But no common investor will be able to ride the wave.

MarinersFan answered 1 year ago

Originally posted by antoine
I have no doubt that it will initially go up, it’ll probably triple. But no common investor will be able to ride the wave.

I agree. This will be a classic skyrocket stock. Zoom up, then crash back down.

If you are quick on the keyboard (and lucky) you can make some fast money.

But it’s not a gamble I would want to take.

Dominique answered 1 year ago
Findwhat just launched their pay per call program – I assume google and overture will do one also.

With both MSN and Yahoo having announced that they will agressively go after the search market, google will be fighting an uphill battle.

And losing all those gambling ads has to hurt.

I like to buy when things have collapsed – I bought Amazon when the bubble burst and did quite well with it.

I have been toying with the idea of placing a few chips on Martha Stewart stock – I am watching a tad longer for signs of life. I may swing by a Kmart and see how her stuff is still selling.

antoine answered 1 year ago
I bought nortel at $3 and rode it for a while. I was going to buy it at $0.60 (canadian) but my stupid broker took 3 weeks to set up my brokerage account (never ever use td waterhouse) I was planning on dumping all of my savings into that stock (100k) if i had i could have made half a million easily. Since I didn’t get in until $3 i only invested 10k. You can just imagine how much I hated myself for not going with a different broker. But hey this is canada, and everything banking related takes forever. You cant even do a wire transfer without making an appointment with the manager at the largest bank here where I am, since no one else at the bank understands what a wire is…

Another one that I did well was Overture back when it went down to $13 last year. Unfortunately I sold it too early at $17.

There’s a lot of good companies that sink for no good reason but some rumors, or information that suddenly hits national tv, even if the information isn’t quite new.

Antoine

aleph answered 1 year ago
Quite a few people I know lost money on Nortel. One close

friend lost over $100,000.00 and had to almost declare

bankruptcy. From my personal experience I have not met

many people who have made money on stocks. In fact,

I have met more loosers than winners by a wide margin.

From my perspective the stock market is really just one

big slot machine and eventually the house wins and you loose.

Real estate however is where I have met MANY that have

done extremely well.

:rolleyes:

Kevin11 answered 1 year ago
There are people that win on some deals and lose on others.

I did well on real estate from the mid 90’s until early the 2000’s and then took a HUGE loss.

Did okay with Expedia when the timing was right, but lost on others.

There is no quick, “for sure” deal. It’s a matter of good timing, some commons sense and a wee bit of luck.

I imagine the institutional investors etc. will clean up with Google, for the avergage Joe, it’s pretty much a gamble I thinks. <span title=” title=”” class=”bbcode_smiley” />

PS – Anyone want some 7 figure prime Vancouver Island Real Estate???