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Is Google (GOOG:NASDAQ) Cheap at $500?

Posted August 5, 2008

“Over the last three quarters, GOOG has missed earnings expectations twice, including the second-quarter results that were released on July 17.” — Rick Pendergraft

by Rick Pendergraft

Baltimore — (TFN):  As recently as last November, Google (GOOG:NASDAQ) was priced at over $700 per share. But the one-time Internet darling seems to have lost some of its allure.

Google took Wall Street by storm in August ‘04 when the stock debuted at an even $100 a share. Over the next few years, the stock seemed to know only one direction: up. It seemed that no matter how high the earnings expectations were each quarter, GOOG always exceeded them.

But things have changed with the economic slowdown that started last summer. Over the last three quarters, GOOG has missed earnings expectations twice, including the second-quarter results that were released on July 17.

As Google continued to climb higher, the stock price became out of reach for most investors, with a round-lot 100-share purchase costing more than $50,000. This resulted in more institutional investors trading in Google… and institutional investors are far less forgiving than individual investors. Read on to learn if you should buy GOOG on the cheap.

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Posted by Rick Pendergraft · Filed Under US Stocks and Markets 

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