GOOG vs. YHOO

[dog]

YHOO continues to look great, and GOOG is continuing to have trouble getting some traction.

The Cramester was all hot on GOOG and luke warm on YHOO. GOOG was "best of breed" and YHOO was in 3rd or 4th place.

Now after weeks and weeks of waiting it seems things are the other way around.

Thoughts?

Will GOOG make a come back?

Are there too many law suits against the GOOG?

[dog]

Was I wrong? GOOG is making a come back so far today. Still, YHOO has pretty been steady lately with no back sliding.

The tech sector appears to be mildly strong. MSFT and INTC are now green right this minute. Of course people might try to dump later to catch the spike.

QCOM, QCOM, QCOM...I should have bought more of them a while back. They have been performing nicely.

[dog]

Ouch! GOOG ended up slammed and YHOO is holding up. I should have know when Cramer kept YHOO for his trust and didn't buy GOOG.

:D

[axb8000]

I think both are good, but Yahoo! is my stock. I think they are "best of breed" when it comes to internet portals. Very encouraging after the stock got hit after it's dissapointing earnings report and just lept back into the mix.

[dog]

YHOO almost seems bullet proof while GOOG is gasping for air.

Thank Dog my YHOO is keeping me in the green :D

I wonder if there is something psychological going on here. I have seen in the past when stocks don't split and their price stays high people are more timid to get in.

Then again it could be the lawsuits that GOOG is facing over allowing people to use trademark terms that are not theirs to trigger their own advertising. Still, that could go on for years.

[dog]

Once again YHOO is golden. Down day and seems to be hanging in there. The GOOG, Cramer's "best of breed" pick, continues to slip slip slip.

[axb8000]

I think people really are scared by GOOG's pricetag. I was watching squawkbox I think it was and there were a lot of bears bashing Google for being too expensive. I don't necessarily agree with them on it being expensive but it does LOOK expensive and seems to keep slipping.

I'd rather keep my money away from that drama :wink: .

[ki klempa]

People do not trade while news is pending, as soon as Google annouces what they are doing the stock will be going down, now is the time to buy if you ever want to buy, I do not buy expensive stocks because this money is for college 3 years away... just my take on Google

Ki

[dog]

"I don't necessarily agree with them on it being expensive but it does LOOK expensive and seems to keep slipping."

The dog agrees.

I think GOOG would do their investors a favor by having a 3:1 or 4:1 split. Much of this is psychological.

Remember when a company is young you are betting on its future potential more so than anything else. GOOG has lots of room to improve. New markets to go after.

I think GOOG has a lot more up side potential than most companies. I also believe it has some insulation against the coming demographic changes that will be brought on by retiring Baby Boomers.

[dog]

By the way, just because I hammer :twisted: on Cramer about GOOG at times doesn't mean I don't believe in the GOOG.

But I have to keep it real. The dog says we have to keep asking questions! The dog says we have to question the "experts" and more importantly question ourselves! :D

[helk]

I've said it in another post that I think YHOO is the better play right now. I think GOOG rose too high, too fast and now needs a break. YHOO has a much better upside potential at this point IMHO.

But I have to keep it real. The dog says we have to keep asking questions! The dog says we have to question the "experts" and more importantly question ourselves!

I couldn't agree more. It's the only way to win in this game.

[dog]

helk,

Looks like you are right on the money!

GOOG just keeps slipping backwards. YHOO slipped slightly so far today, but not looking too bad over all.

Luckily I bought some YHOO at a discount :D

[optimus25]

I agree with helk, GOOG rose too fast too soon. Market capitalization and PE is a little to high for me. Too risky. On CNBC an analyst who reviews insider buying and selling found that a number of insiders at google have been selling stock. Over a billion worth of stock has been sold by insiders. Also, the company may also be doing a second offering worth over 1 billion. This may cause some near term weakness on the stock price.

A couple of weeks of consolidation at these levels wouldn't hurt the technicals of the stock. Otherwise it has a lot of momentum, especially since they look to creating a foothold in china by having a stake in BIDU.

[jbtrader23]

I like Jim for entertainment purposes, but he was scaring me with this Google story.

It's already got a market cap of $78 billion (after being public for a year). Jim was talking about these growth numbers and saying it could earn X a share in a few years, and if he's paying twice the growth rate, it's a $600 stock or more.

I have a hard time seeing how the market cap could double or triple from here with ease. Can you really see any internet/media company being worth $150 or $200 billion? It's already worth as much as Time Warner. It's worth more than YHOO, AMZN or EBAY. I have a hard time seeing how it's going to be worth more than all the internet companies combined.

True, it's earning money. But the growth number for '06, '07 and beyond seem a little optimistic.

[jbtrader23]

FWIW, look at the market caps for these leading companies:

WMT - $193 billion
CSCO - $113
GE - $360
MSFT - $290
C - $225
INTC - $156

Does Jim really believe GOOG will pass some of these companies in the next few years? Even YHOO peaked at $100 billion during the huge internet bubble.