Gaga for Google

I love google and everything they do. Google.com is my homepage and I use just about every feature on the Google Toolbar (which is the BEST software product in the WORLD….in my opinion).

Check out this simply AMAZING map tool. It’s a version of Google Maps where you can actually view satellite images of any location you enter. You’ll see what I mean: Google Maps (click on “satellite” at the top/right).

They are extremely innovative, fast-paced, a money-making machine and OVERPRICED.

Google is in a quick-growth phase. Take a look at a yearly chart:

It took only 5 months for the stock to double, not uncommon, but this is a stock with a $50,000,000,000 market cap. ($64 Billion at the time of this writing). The P/E ratio for Google has been over 140 for quite some time….it’s like a bull maket relic!

I’m sure there is tons of money to be made with the Google stock, but I am going to stay conservative and not buy. “Everyhing reverts back to the mean” according to Warren Buffet, who was also one of the few investors to come out of the tech bubble in a profit.

Take a look at a five year chart I pulled of Google:

Viewing the yearly chart really shows the rapid growth of Google. While I love ‘em, I feel paying for a stock trading with a 140 P/E spells disaster in the longterm.

I’m looking to open an E-Trade account in addition to my current Ameritrade account. E-Trade allows you to buy specific international stocks, and I’ve had my eye on a few lately.

I could really go for a Google Lunch right now.
Ciao.