Google's Inflated Market Cap Not THAT Amazing [View article]
"At 30 times next years earnings Google is a bargain compared to most companies with its growth rate. However, their profits are all search. At some point a better product will come along. The question, will Google have diversified enough by then."
Exactly correct. I was a total Google skeptic initially. Search? Who Cares? Then I realized what their real business was- advertising-- and that that there are no emerging competitors.
Emerging competitors would have a high barrier to entry-- very high. The place where GOOG can slip is buy overreaching. If they launch a "Gphone", as suggested by the rumor mill, they will take a huge hit, because they will be entering a business that is consolidating around the iPhone. It would be madness.
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"At 30 times next years earnings Google is a bargain compared to most companies with its growth rate. However, their profits are all search. At some point a better product will come along. The question, will Google have diversified enough by then."
Oct 11 09:09 am
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All Comments by Tom B »Google's Inflated Market Cap Not THAT Amazing [View article]
Exactly correct. I was a total Google skeptic initially. Search? Who Cares? Then I realized what their real business was- advertising-- and that that there are no emerging competitors.
Emerging competitors would have a high barrier to entry-- very high. The place where GOOG can slip is buy overreaching. If they launch a "Gphone", as suggested by the rumor mill, they will take a huge hit, because they will be entering a business that is consolidating around the iPhone. It would be madness.