Enthusiasm for Google drains away as doubts set in

February 17, 2006

The Economist magazine has a story in their next issue entitled
Enthusiasm for Google drains away as doubts set in
. The article talks about the recent fall in the Google stock price after Davos and there is nothing earth shattering in the article but I was taken aback by the market chart they included in the article as I hadn’t realized how steeply the Google stock had fallen. The one interesting point that that article raises is about we value these Internet companies – Traditional model of 20x earning for a bricks-n-mortar company doesn’t seem to work for technology companies and a debate on valuations is sorely needed before Bubble2.0 implodes.

Here’s a shot from Yahoo Finance comparing Google, Yahoo, Amazon against NASDAQ:
Market Chart

Guess Yahoo’s not having a great 2006 either.

google, yahoo, amazon, the+economist, stock+market, bubble2.0, web2.0


3 Responses to “Enthusiasm for Google drains away as doubts set in”

  1. Derek said

    Yikes! Pretty funny how the interest declines when the “newness” wears off a little.

  2. Derek said

    Oh, and I forgot, make sure you go on that Hawaii trip!!!

  3. Thanks Derek – And wild horses couldn’t keep me away from Maui. 🙂

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: