Google Breaks Down

On September 10th, we highlighted that Google was testing key support that was put in place earlier this year.  After hanging in there for a couple weeks, Google finally gave way this week and broke down.  The next level of support for the stock is in the $340 range, and $310 after that.  For now, the downtrend remains in place.

Comments

[Vox Rationalis:]

Yeah, I was having a hard time making the stock break through that "resistance level." Good thing for me I was able to create a Google voodoo doll, into which this week I stuck several needles. So you better not buy this stock, because I'm going to cut off the head next. And you know what happens then - straight down.

2008 Oct 02 08:36 PM

[Nikimathew:]

This multiple is still on the high side, but it is far more reasonable than Google's valuation than anytime in the last few years. As we've argued previously, we think a fair multiple for Google is about 20X-25X ($300-$375), and we're finally close to that range.
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Nikimathew

Internet marketing

2008 Oct 03 01:20 AM

[Francorp:]

The fact is that Google still controls the Internet Ad Spend. More and more companies will be looking to get more from their ad dollars. In most businesses today the most effective spend is on the Internet. Google isn't going anywhere.

2008 Oct 03 08:19 AM

[gwinner:]

Google's not going anywhere, that's agreed. But that doesn't mean their stock won't. They'll continue to grow, but at decelerating rates. In the current environment, a PE in the low to mid-twenties is a reasonable expectation for GOOG.

2008 Oct 03 02:06 PM