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  Why don't they love Google!
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Mikey  
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 More options Nov 6, 8:31 am
From: Mikey <archange...@aol.com>
Date: Fri, 6 Nov 2009 05:31:57 -0800 (PST)
Local: Fri, Nov 6 2009 8:31 am
Subject: Why don't they love Google!
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Google trades at a forward PE of 21 while Amazon trades at a forward
PE of 53. Yahoo at forward PE of 37. Google has more cash on the books
than Amazon, Ebay and Yahoo. Has captured 70% of it's market. While
Amazon competes with many others. Yahoo is a dead and Ebay is only
surviving because of paypal. Google has no debt. Amazon, Ebay and
Yahoo do. Google pulls in more money than Amazon,Yahoo and Ebay.
Why do they still like Ebay, Amazon and Yahoo better. Does anyone get
Google. If Google split it's stock the amount of times Amazon,Ebay or
Yahoo has it would be a 30 dollar stock. Thats a better deal. Is
everyone so against this company because of it's stock price.

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modelportfolio2003  
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 More options Nov 7, 4:58 am
From: modelportfolio2003 <steve.alt...@gmail.com>
Date: Sat, 7 Nov 2009 01:58:05 -0800 (PST)
Local: Sat, Nov 7 2009 4:58 am
Subject: Re: Why don't they love Google!
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@Mikey
I have often wondered the same as you but the market is probably more
rational than you think.  Let's look at some estimates for the 3
companies to compare, namely Google, Amazon and Yahoo:
1.  Goog
Net Rev est for 2009/2010/2011 are $17.4bn, $21.04bn and $23.93 bn
implying Y/Y % growth of 10%, 20% and 14%
Eps est for 09/10 and 11 are $23.61, $27.66 and $32.03
implying Y/Y % growth of 17.5%, 17.1% and 15.8%

2.  AMZN
Net rev est for 2009/2010 and 2011 are $23.85bn, $30.3bn and $36.2 bn
implying Y/Y% growth of 24.5%, 27.1% and 19.5%
Eps est for 09/10 and 11 are $2.59, $3.19 and $4.01
implying Y/Y % growth of 24.5%, 27.1% and 19.5%

3.  YHOO
Net rev est for 2009/2010 and 2011 are $4.66 bn, $4.84bn and $5.1 bn
implying Y/Y % growth of -14%, 4% and 5%
Eps est for 09/10 and 11 are $ 0.67, 0.85 and $ 1.05
implying Y/Y growth of -20%, 27% and 24%

So for next two years Google is actually growing at a slower rate in
terms of net rev and eps than Amazon and Yahoo.

At $551, Google is trading at approx 20 times 2010 eps. At $125 AMZN
is trading at 40 times 2010 eps and Yahoo, at $16 is trading at 18
times 2010 eps.

Given improving macro economic picture, I see Google reaching $650 in
next 6-9 months, or a p/e of 23 times 2010 eps est of $27.66.

Comments?

On Nov 6, 1:31 pm, Mikey <archange...@aol.com> wrote:


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