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Why would anyone invest in Google? The reason most people (including me) give money to a company in exchange for stock shares is because they hope the company will grow and therefore their shares will be worth more. My question is, where is the long-term growth potential? They already have the number 1 search engine. Their free email is an interesting idea, but there's aready way too much competition in that area for them to gain a very big market share. I just don't see the potential.
Posts: 786 | Registered: Jun 2003
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Well, internet advertising hit rock bottom in 2001 and has been ramping up ever since. Notably (1) big companies that avoided the first bubble are now stepping in (2) the TV market is getting softer thanks to Tivo and such.
Posts: 1839 | Registered: May 1999
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Stability, there is no chance of Google going under in the forseeable future, and even if it grows a little, it'll be stable, stability is a very important asset in an unstable market...something that Google has that previous internet type companies don't, I can see people willing to put Google into their long-term portfolio. Satyagraha
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Not competitive in email? Aren't they offering some huge amount of space? Sure it will be spied on, but everything is nowadays.
Posts: 11017 | Registered: Apr 2003
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Gmail will be offering 1g of space, which is close to unheard of, especially compaired to MSN's 10mb, and others. As another note on why Google would be worth investing, here are ratios of net income to number of employees for the four companies listed in that link:
Amazon: $35 million to 7800 employees, or $44,870 per employee. Ebay: $447 million to 6200 employees, or $720,970 per employee. Yahoo: $238M to 5500 employees or $432,730 per employee. Google: $106M to 1628 employees or $651,110 per employee.
In other words, Google is *seemingly* more productive than Amazon and Yahoo put together. I say seemingly because productivity is an odd animal to try and measure, and plus, in the world of the stock market, it's all perception anyways. Satyagraha
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with the data given: google would be $63,020 per employee Ebay would be $72,096 per employee Yahoo would be $432,727 per employee Amazon would be $4,487 per employee
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