Fred Hickey, the editor of High Tech Strategist, is saying Google Inc. (NASDAQ: GOOG) will have a very large earnings miss this quarter followed by "more disappointments to come," according to Barron's.
What happens then? The fall-out from weaker earnings is likely to lower the P/E multiple, dropping from 25 to, perhaps, 20. At that level, Google could fall below $350, and it could happen fast.
Google may have ended its run as Wall Street's darling.
Douglas A. McIntyre is an editor at 247wallst.com.











Reader Comments (Page 1 of 1)
3-09-2008 @ 8:40PM
john doe said...
we can only hope------should be at $47.00 like qualcom from $800 to $47.00--------get real
3-09-2008 @ 8:45PM
1greenthumb said...
Give me a break, Barron has been against Google at 200, 300, 400, 500, 600... it was only until recently that they actually said Google was undervalued. Talk about flip flopping... Just goes to show you it is not normally worth it to pay for investment advice.
I wouldn't be surprised if we see a bottom here really soon... it has been beaten up enough and the shorts are certainly getting greedy at these levels.
1greenthumb
http://stockpicky.blogspot.com
3-09-2008 @ 10:08PM
Dane Graves said...
Google will fair much better over the year than most financials, and Apple, too. I'm averaging in and holding on 'til Christmas.
http://www.mypowermall.com/Biz/Home/113946
3-10-2008 @ 2:08AM
Sanjay Dalal said...
Google One Year Performance Beats Microsoft and Yahoo - The Innovation Index
If one analyzes Google's 1 year chart, Google beats both Microsoft and Yahoo as of Feb 15, 2008. However, Google has dropped further since Feb 15. Take a look at Google's performance last year - it was similar during the first two quarters of 2007. It went either sideways or down. Google picked up strong in third quarter of 2007, and did really well in the fourth quarter of 2008. And the top reason for that was the growing Google market share and revenue that beat the earnings estimates.
Google Inc. (NASDAQ: GOOG) is one of the Top 20 Innovators of The Innovation Index. Microsoft (NASDAQ: MSFT) also belongs to The Innovation Index. Yahoo (NASDAQ: YHOO) belonged in The Innovation Index in 2007. Google one year stock performance beats NASDAQ, Microsoft, Yahoo and News Corp combined. Although all these innovators are showing negative returns in 2008 - except for Yahoo owing to the pending acquisition offer from Microsoft. How will 2008 shape out for these innovators? The Innovation Index predicts double-digit gains for each of these innovators' stock performance in 2008. This will be due to better Summer and Fall earnings seasons, and investors returning after the hiatus. This means Google could potentially exceed the high point of $747 set in 2007. The Innovation Index is long on Google and Microsoft.
3-10-2008 @ 2:31AM
Drew said...
I'm sorry everyone, Google's price dropping was my fault.
3-10-2008 @ 3:23PM
gumby said...
Google is great but the economy is tanking like hell.. GM and Ford is gonna declare bankrutpcy anyday... Really, anytime... there is no such an engagement announcement for bankruptcies... When one goes bankrupt, one just announce it on the last minute... We will be in deeper recession than we thought we would.... There is noting to fall back on as everythign is made overseas... We will just be peddling here for overseas... In Indonseia, they are building the world's teallest skyscraper at twice the height of ours... They are able to exploit their own people better than we can here.. So we move jobs overseas.. We dont like to be exploited , right?? So we are jobless.. huh?
3-10-2008 @ 3:03PM
gumby said...
We are skeptical about this recession whether it is for real.. we are hoping that the stock market will go up again soon... This is more flat wrong than right.. We are in for a full blown recession if not depression as GM and Ford sees no chance of regaining market share from Toyotas and Hondas... We can not afford to take GM and Ford to repair shops just once or twice... we want cars that do not require one single repair for years since new... This spell disaster for GM and Ford.. There is no turnaround for GM and Ford...Once GM and Ford goes under. the ripples will be like tsunamis and will lop many more jobs than we expect ever Toyota and Honda car owners will lose jobs anyway... so much for repair bills...
3-10-2008 @ 3:17PM
gumby said...
goog at 150
3-10-2008 @ 3:11PM
gumby said...
goog will still be around but not at $400 a share anymore ever... Goog has to do work instead of playing the stock market... and advertising like lazy.. Google is finding out that it is not as easy as they thought..
3-10-2008 @ 3:26PM
gumby said...
Our stock market is not cooperating at all.. Lets unload as much as we can ... Tell your employers to stop withholding for Keoghs or 401K.. You can use this money now... because you cant touch this money once it gets in 401K until you are at ripe old age of 59 and half.. I call 401K money trap... Not worth investing any more money in our stock market that is not cooperative at all... If you disagree, be my guest... I am not forcing yo.
3-15-2008 @ 12:54PM
Dane said...
It is better to put your before tax dollars in a 401k, gumby.
Most 401k have company matching contributions, so you are effective getting more money than you put in. If you don't put money in it, then the government takes it anyway as taxes. Which would you choose? Pay yourself and get matching contributions and lower tax on your income OR give it to the government?
Also, you can allocate your money to different investments, like dividend paying stocks and gold etf's.
You MUST be young, because a 401k is meant to be a savings for your future. It is NOT a savings account where you make regular withdrawals.
People Know what a 401k is for, so I disagree with you. It is NOT a money trap. It is a great way to save for your future tax-free.
3-15-2008 @ 3:04PM
Elliot Walsey said...
Google is still a great value. Even in a poor economy people and businesses still need info and Google is no. 1 at that. With about 63% of the market and an overall growth rate of 30% a year how can you not see its value. In addition NO INVENTORY PROBLEMS. This company has everything a growth stock should have and with a P.E. in the high 20's to 30 it just can't be overlooked.