Google ranks among the 100 largest enterprises of the world

Another superlative of Google.

Since the stock exchange listings, Google knows only one direction: "Upwards". Based on the market capitalization the search machine is under the top 100 concerns in the world now, joining the club with large concerns such as Microsoft or Exxon mobile.

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Just bear in mind the following:-

1. Expectations are already very high
2. Relative valuation levels are the same
3. We are just past a Quarter when GOOG was a stellar performer (+63% vs. +2% for the S&P500), a "must own" stock. Conceivably, Fund Managers may want to take some profit now, and trim back any "overweighting" in the stock, perhaps before the Q2 results??
4. Overseas growth was one of the fuels of the previous Quarters' results, and there is not as much scope for increase in market share - page down and see Table on penetration for e.g., Germany

On the other hand:

1. There are precious few (if any?) US Large Cap stocks growing as fast
2. GOOG might be added to the S&P500, where the mean market capitalization is $22bn., versus GOOG's $81bn., and that would "force" the S&P500 Index funds to buy it.

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And despite steady Insider Sales, Segey and Larry still have quite a bit at stake - their still very large stakes, that is.
Aye!

 

Thanks for the adons. I enjoyed the readings especially "insider sales" is new for me.

 

Thx, Arnie. As a web nube and a born kludger of code (apparently, a "talent" I never knew I had and wished I didn't), I can't give too much back for all the great things I have learne on this Forum. But this is stuff I actually know a little bit about.

Some people specialize in trading off their interpretation of Insider Sales (or Purchases).

In the case of Google, one needs to be carefull. Remember that in the original IPO (Initial Public Offering) the plan was for the two founders, Sergey Brin and Larry Page to sell about 1mm. shares each; but just before the IPO, they cut that by a little over half, selling about 480,000ish each I think - one of the better investment decisions of 2004, with 20/20 hindsight!

So, in a sense, their Insider Sales since then have been simply catching up with their original intentions; and thus less meaningful / predictive than "normal" insider sales.