__/ [CoreyWhite@xxxxxxxxx] on Sunday 23 October 2005 16:30 \__
> Last Friday Google's stock was up nearly 4 times its IPO. This result
> suprised investors and analyists, who expected no where near the
> returns that Google saw this last quarter. The mistry behind the
> phenomenon of Google is that their profits are being earned in a way no
> other buisness can.
Well, what about Overture, MSN and the others? Google have probably capi-
talised on something, yet they are not alone in the picture. It is no
niche either.
> Buisnesses who advertise through google only have to pay the company
> when a web surfer clicks. The advertisements are targeted to surfers
> based on their search criteria, and this means that anyone with a
> computer can bill any company they search for, without being charged to
> look the link up.
That's known as click frauds and lawsuits are already pressuring for
tighter control and supervision.
> Google profits will continue to exceed expectation as long as the
> service continues to be available. It is an investment into google
> every time you click on an advertisement, and surfers the world over
> are putting as much money into google as they want to.
Repeated clicks lead to a diminish in value though. Cookies and IP ad-
dresses are used to control bad behaviour.
> When you have invested your savings in google you want to use the
> service, or when you have a reason to compete with another company who
> is advertising on google. Hackers can literally control google's share
> prices, and why would they invest in anything else when they know they
> can make google double every year?
Stocks grow in line with expectation. It was only months ago (maybe
the previous quarterly report) when Google doubled or quadroupled their
earnings. Subsequently, their stocks continued to go down, despite the
positive report.
Remember that the value of the stock is more closely related to momentum
than it is related to growth.
Roy
--
Roy S. Schestowitz | "Oops. My brain just hit a bad sector"
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