A Personal Blog
Google Sets IPO Pricing
I’ve been shying away from the Google IPO talk a bit. Not because I don’t have opinions, but because it largely doesn’t matter. The course is set, and people will do what they’ll do. Me commenting on it and offering ‘insightful’ commentary just ain’t doing much (besides getting me quoted in 30+ major newspapers and counting… too bad they don’t link here).
Anyways, this is real news. Google’s set it’s stock price at over 100$/share, under the ticker symbol GOOG.
What does this mean?
1. The share price doesn’t really matter. Investors or bankers will buy based on qualitative things at this point, and the euphoria will be great enough that the quantitative facts (like P/E, heh) won’t really matter.
2. The share price matters a hell of a lot. 10,000$ buys you 100 shares. ANY movement in the share price will massively affect your holding of the company.
Good luck to those who are buying, this latest news has solidified my desire to, well, not.
| Print article | This entry was posted by Jeremy Wright on July 26, 2004 at 11:15 am, and is filed under Business. Follow any responses to this post through RSS 2.0. Responses are currently closed, but you can trackback from your own site. |
Comments are closed.
about 7 years ago
At $38 Billion Market Cap and about $300 Million year 2004 earnings, I do get a P/E of about 126! And they are valued on par with Yahoo! and only 10 Billion below eBay. Not very reasonable I’d say ;)
about 7 years ago
Whoops, dropped a 0. Edit coming up ;-)