Google Shares Jump On Profit Rise

SpinnerSpinner Birmingham, UK
edited October 2005 in Science & Tech
Shares in Google have leapt to record highs after the internet search engine reported bumper quarterly profits. At the close of trade on the New York Stock Exchange last Friday, shares in the firm were up more than 12% at $339.84. Google reported a third quarter net income of $381.2m (£215m) after the closing bell on Thursday, from $52m in the same period last year. Other US internet stocks rose on the news, with rival Yahoo up almost 0.17% at $35.34 and eBay up 0.36% at $39.31.
"We surprised ourselves this quarter. Business was much stronger than I expected," said Google chief executive Eric Schmidt.
Submitted by: Trogan_1000

Source: BBC

Comments

  • LeonardoLeonardo Wake up and smell the glaciers Eagle River, Alaska Icrontian
    edited October 2005
    OK, it definitely is an attractive company, but can you say "DotCom Bubble"? Of course, it would be nice to already own shares at that price. I just can't see buying at that price.
  • djstubbsdjstubbs NJ
    edited October 2005
    Anyone who had shares last week would have raked in quite a hefty sum after those financial earnings were disclosed.

    GOOG ftw
  • LeonardoLeonardo Wake up and smell the glaciers Eagle River, Alaska Icrontian
    edited October 2005
    Sure - it's the "coulda, woulda, shoulda" syndrome... that we all experience from time to time. I'm just not bold enough to speculate on single issues of any type.
  • GHoosdumGHoosdum Icrontian
    edited October 2005
    Judging by GOOG's EPS as of last week, I would not have done a 'buy' if my life depended on it, unless I was a gambling man. I would have made the wrong bet, but everything in my Finance education screams at me that GOOG is a strong sell right now, and has been for quite a while. Like Leo says, it seems like a bubble - I think Google's share price is artificially inflated due to perception, and with Microsoft doing everything they can to erode Google's markets, I would think that those perceptions are going to change for the worse pretty soon. I'm not saying that I think Google is in danger as a company, but I think their share price is in danger.
  • DoctorGeo2008DoctorGeo2008 Flint, MI
    edited October 2005
    Short sell!!!
  • GHoosdumGHoosdum Icrontian
    edited October 2005
    My above opinion was definitely not meant as financial advice for anyone who holds Google shares, I don't hold any shares myself, nor do I take responsibility for any losses incurred by anyone who does any trading based upon my opinion. I will, however, accept any accolades you care to bestow if I turn out to be right. ;)
  • DoctorGeo2008DoctorGeo2008 Flint, MI
    edited October 2005
    GHoosdum wrote:
    My above opinion was definitely not meant as financial advice for anyone who holds Google shares, I don't hold any shares myself, nor do I take responsibility for any losses incurred by anyone who does any trading based upon my opinion. I will, however, accept any accolades you care to bestow if I turn out to be right. ;)


    Me too. :thumbsup:
  • LeonardoLeonardo Wake up and smell the glaciers Eagle River, Alaska Icrontian
    edited October 2005
    Oh, I know you weren't giving financial advice.
  • danball1976danball1976 Wichita Falls, TX
    edited October 2005
    I purchased $12 worth of Google shares, and after less than a month they are now worth $13.11.

    I have a Sharebuilder account and I also invest in:
    AMD
    Chevron/Texaco
    Lowe's Home Improvement Stores.
  • LeonardoLeonardo Wake up and smell the glaciers Eagle River, Alaska Icrontian
    edited October 2005
    Great, Danball! Glad to see you are looking out for your future. I highly recommend you diversify. You know, the all eggs (or too few) eggs in one basket. Your upside potential is super - market rises, you look great. Your downside potential is equally spicey - market fall could clean you out. For your own security, have more stock issues, or look into broad, market-indexed (S&P 500, Wilshire 4000, et cetera) mutual funds.
  • danball1976danball1976 Wichita Falls, TX
    edited October 2005
    Aren't I diversified?

    I have a internet/communications stock, a technology stock, a oil and gas stock, and a retail sector stock.
  • LeonardoLeonardo Wake up and smell the glaciers Eagle River, Alaska Icrontian
    edited October 2005
    It's better than all banks, or all tech, or all department stores. It's still though, large capitalized firms. What I'm getting at, you need to have a plan that insulates you better. You see, even if just one of your issues goes really sour, you've lost potentially 25% of your portfolio's value. If you had 20 different stocks, one company could go completely bankrupt and you'd be only down a theoretical 5%. If you held a mutual fund based on the S&P 500 Index, or the Wilshire 5000 (500 and 5000 companies, respectively), your portfolio value is less and less vulnerable to the foibles of any given company. You are spreading out your risk.

    Dan, you ARE on your way to success because you apparently are planning for the future. (Those who fail to plan, plan to fail.) Get some books from the library on the fundamentals of investing. Learn about risk tolerance, diversification, mutual funds, large capitalized stocks, small caps, et cetera. It's not difficult reading. Most of the big investment companies, especially the large mutual fund companies, have good investor/consumer education and tutorials online. Both Vanguard and Fidelity have accurate, easy to read material online.

    Edit: Other terms and principles to become familiar with: dollar cost averaging, investment goals, long term/short term investing, growth vs. income, balanced
  • GHoosdumGHoosdum Icrontian
    edited October 2005
    Leonardo wrote:
    It's better than all banks, or all tech, or all department stores. It's still though, large capitalized firms. What I'm getting at, you need to have a plan that insulates you better. You see, even if just one of your issues goes really sour, you've lost potentially 25% of your portfolio's value. If you had 20 different stocks, one company could go completely bankrupt and you'd be only down a theoretical 5%. If you held a mutual fund based on the S&P 500 Index, or the Wilshire 5000 (500 and 5000 companies, respectively), your portfolio value is less and less vulnerable to the foibles of any given company. You are spreading out your risk.

    Dan, you ARE on your way to success because you apparently are planning for the future. (Those who fail to plan, plan to fail.) Get some books from the library on the fundamentals of investing. Learn about risk tolerance, diversification, mutual funds, large capitalized stocks, small caps, et cetera. It's not difficult reading. Most of the big investment companies, especially the large mutual fund companies, have good investor/consumer education and tutorials online. Both Vanguard and Fidelity have accurate, easy to read material online.

    Edit: Other terms and principles to become familiar with: dollar cost averaging, investment goals, long term/short term investing, growth vs. income, balanced

    Great advice, Leo. :thumbsup:
Sign In or Register to comment.