Google stock set to fall?

By on November 27, 2006, 6:55 PM
Weekly financial newspaper Barron's posted a warning during the weekend saying that Google stocks are "overvalued and poised to fall" in a similar fashion to what happened to online companies Amazon.com and eBay in past years.

The news came just a week after Google had broken the $500 a share barrier which raised some eyebrows in the financial community. Barron's admittedly was skeptical about Google's stock back when it was valued at $360 (today's trading closed at ~$485), however they may have a strong case today when their stock is being valued at 37 times next year's expected earnings. Perhaps even more important than that, Google has kept its image of a raising star thanks to booming growth rates, however it will prove difficult to maintain that pace in the years to come.

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