Tuesday, June 28, 2005
Google bubbles over $300
Even though I like Google the fact is that I'm starting to move away from it...to Amazon's A9.com for search (yep, that's my toolbar now), to Interactive Corp./Ask Jeeves' Bloglines and experimenting with MyYahoo for RSS feeds, and since Froogle never worked very well I'll be checking out eBay's new acquisition Shopping.com instead.
So why is the one-trick pony (the vast majority of its revenue comes from Internet advertising which is growing, sure, but what if advertisers stop pouring money?) that goes by GOOG on Nasdaq going thru the roof -- seems like professional pools of money have decided they need to be invested in Google no matter what the price and by May 38% of Google shares were owned by them up from 35% a month earlier according to this New York Times story (registration required):
"This is where you can say this is like 1998," Mr. Tinker said. "Institutions realize they can't afford not to be in, whatever the price."
...Comparisons are also being made between Google and Time Warner, another company deriving the bulk of its revenue from advertising. Time Warner had a market capitalization of $79.19 billion at the close of the market on Monday, below Google's though it posted first-quarter revenue eight times that of Google, and profits about three times as large.