Thursday, January 19, 2006

Cracks in the Google Share Price?

Jonathan Berr, in an article called Two Abandon Google Bandwagon, is reporting that two US analysts from Standard & Poor's are advising their clients to sell their Google stock.

Berr reports that analyst Scott Devit, in a note to clients, says "... we believe Google is an outstanding company..." however he then goes on to say "... we believe that the shares are overvalued."

I tend to agree with him. Google stock has increased around 300% since it's IPO in August 2004. The last few weeks it has been interesting to watch the stock, as it hit a high of around US$475, and now today has slowly dropped back to around US$444. With some analysts predicting $2000 a share, all this speculation seems to be getting a little out of hand, and slightly reminiscent of 1999.

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