GOOG to $500

[dog]

During the Lightning Round, Cramer was asked about Google (GOOG). Cramer grinned, got close to the camera and whispered "Some guys think it's going to $500."

8O What the...

OK, OK...Cramer what are you talking about this time? First you say it is going to $350 and it drops. Now you are saying $500? Do you mean long-term?

And who are these guys that think it is going to $500? Why do they think this? Lets have some reasoning.

Is GOOG a pure speculation play now?

[jbtrader23]

I heard Jim mention yesterday that GOOG could earn $7 next year and $10 in 2007. At a 50x multiple....he whispered $500 into the camera.

I really question these projections. Remeber the projections in the internet bubble days.

[dog]

I read an article (was it Business 2.0?) about all the areas that Google wants to, or is rumored to want to, expand into. If two thirds of them come to fruition Google will grow significantly, but that's a big if.

I'm also wondering about the lawsuits against Google on trademark infringement. They currently allow anyone to associate their advertising to any trademark. So if I sell Bob's Crap-o-la Shoes I can associate my advertising to the trademarked word "Nike", etc.

Since, currently, most of Google's revenue comes from advertising could a negative trademark infringement outcome destroy their sales?!?!?

Cramer seems to be speculating more so than investing with the GOOG :!:

[optimus25]

PE seems to high. You're paying a premium to all the "ifs". As a trading stock it would be fun to trade in and out of, but as a long term investment...thumbs down.

[indigo]

I'm in some of Google’s beta programs for gmail and jabber. If ad revenue is their highest money maker, then I believe the stock is a good long term choice.

First, Jabber (Google’s instant messenger), allows voice over IP. This feature some companies are charging users about 20 bux a month, of course with google this feature is free.

Soon Google will gain market share in the online chat world and be within the top two chat programs in the world. Google's stripped down approach to new features isn't in your face like AOL. Users will switch and ad revenue will increase.

Then there's always gmail the beta service that many users already have. Their invite only beta program is a infectious solution that also has the quality to sustain long term usage.

In all, Google will start eating away at Yahoo and Microsoft for both email and instant messaging. They pose a life ending threat to voice over IP companies and will eventually dominate the internet until the next Google comes along.

I know 500 sounds ridiculous, but Google will bubble and it hasn’t bubbled yet. When the company does I’m sure you’ll know what to do!!!

Sincerely,
NorCal


Ps. Send me a private "ONLY" message and I’ll hook you up with a gmail account :)

[dog]

GOOG is still thrashing about in the water today and YHOO is looking good.

I also read about all the things GOOG may or may not be doing. Their is potential there, but my gut feel is this is really becoming more speculation than trading.

I want to like the GOOG. The coming sevices sound compelling. I just need something substantial to give me a better feeling about them.

[Jay Framson]

I don't know, I bought GOOG about a week ago and it's gone up a little (from $280 to $286 - down to $285 after hours today), while I've been checking YHOO and it's pretty much exactly where it was 5 days ago. Looking at them together GOOG looks pretty good so far:

http://finance.yahoo.com/q/bc?t=3m&s=YHOO&l=on&z=m&q=l&c=goog

Goog may be speculative, but I'm on for the ride .. we'll see. Could be the hometown thing (I live in Silicon Valley) that has me optimistic.... Also have some Microsoft and Ebay (which I bought just before it spiked :) ) so I'm sort of overloaded on tech, otherwise I'd think about buying some YHOO to be on the safe side.

[ki klempa]

You know what I'm thinking, If Cramer thinks Google is going to 500.00 why isn't he buying, you have to think about that, there was 1 week he didn't mention it so there wasn't any restrictions in buying, so when he buys google I will too.

Great call on Ebay - I got some when it went to 30.00 - good minds think alike... 10.00 or more profit so far, well when it hit 44.00 I did take $500.00 profit and buy MOT.. but good call on Cramers view on ebay - but he's way off on Google.

sorry to be negative on goog but I am

Ki