Greetings fellow traders!
Exactly one week ago on June 24, Google was trading at a puny $474. Fresh off of a huge end of May plummet, I decided that it was time to move in for the kill. Google, the largest search engine in the world takes up over 2/3 of total searches on the internet. With a 52-week high of almost $700, it was trading at a P/E ratio of 18. Let's break this down a little further:
As of March 2011, Google has, on-hand, $12.4 BILLION in cash. No debt, and 20% revenues in search engine growth year over year. The latest was $5.9 billion. Pretty much anyone and everyone on this planet knows what Google is. The piece of information is a dealmaker - According to current valuations, Google stock price should be valued at $663.
So I thought to myself, $474? $30 off a 52-week low? You've got to be kidding me. Now, a week later, Google has broken the 500 mark and is well on it's way to hitting $520 as we roll into this July 4th weekend. Should I take profits? I believe this stock will be rolling well into the future.
Let me know your thoughts in the comments section!
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