Google – Worst Stock Pick For ’07


So says Motley Fool. I usually ignore any news about stocks, predictions, etc. Yesterday I was talking to Aaron and he asked what I thought about Google stock at over $450. I told him that I thought it was overpriced. But I thought it was overpriced at $100.

Given that my knowledge of the stock market is over valued at a nickel, I have to trust the knowledge of others if I want to discuss the market at all. What I read made sense:

Judging from its $142 billion market cap, in spite of a mere $2.4 billion in trailing earnings, much of Wall Street is enamored with the search engine, too. And that’s a problem. When a company trades at such a high multiple to its earnings, the market expects tremendous future growth to justify that premium valuation

That makes sense to me. But I remember the dot boom, and a lot of smart people looked like fools after that crash. Maybe not Motley Fools, but fools all the same.


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