Google Stock Is Worth More

[espmartin]

If you are a stock trader, then you'll know that Google stock is way more
valuable than both Yahoo or MSN. Google was trading at clost to $700 per
stock, and is now down to $584.35, while Yahoo sits at $19.92 per stock,
and MSN is at $31.96.

Maybe you all can just give me your old Google stock, huh?

 

[temi]

Google stock is grossly over valued, it will come down when they realise Google is not invincible after all.

 

[SkinnerW]

Martin, I don't know if you aware how stock market works but $700 share price does not give you complete picture about stock value...

I have been working on Wall Street quite a few years and let me explain in simple words why some shares are traded in low teens and some in high hundreds...

In many cases whenever share price goes too high companies tend to "split" the stock in order to make it more affordable and attract more investors. If split is 4-for-1 for example each owner of 1 old share will now own 4 new shares valued @ 1/4 of original share price. Also as a "side effect" after split prices of new shares have tendency to move faster towards pre-split levels.

I can't tell you exactly how many times which stocks were split but I remember for sure Microsoft split his stock somewhere in 2002-2003.

Ofcourse main factor that determine share price is company earnings and projected earnings, but there is also such thing as "earnings-per-share".

So... in other words if one company has 1M shares traded @ $500 and another 100M shares traded @ $10 - you tell me which share has more value...

I am not saying that one of the stocks you mentioned in your post is may be more valuable that another since I did not look at the numbers. Just giving an idea that share price alone is not the best way to evaluate the company...

 

[espmartin]

Wow Skinner. Thanks for the education Very informative!