- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Coaching Changes
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
GOOG the next WMT?
Posted on 1/18/11 at 8:55 am
Posted on 1/18/11 at 8:55 am
I have heard two people talking about Google becoming the next Wal-Mart. Basically, invest $10,000 ( I would wait for a pull back before I did this) and hold it for 20 years and you will be a millionaire. I personally could see it happening but just wanted to get your thoughts on it.
3
Posted on 1/18/11 at 8:58 am to NELAtigers
I would love to see their 20 year forecast that they base it on.
GOOG is already one of the largest companies in the world, expecting that kind of growth is nothing short of idiotic.
Now, had you invested in it at the venture stage, that would have been true.
GOOG is already one of the largest companies in the world, expecting that kind of growth is nothing short of idiotic.
Now, had you invested in it at the venture stage, that would have been true.
Posted on 1/18/11 at 9:03 am to TheHiddenFlask
This was my initial argument but after further discussion a good point was made. GOOG has accessibility to more people than WMT and the stock is ripe for a split of some sort.
Posted on 1/18/11 at 10:37 am to NELAtigers
I don't even know if that's accurate. GOOG = No-China. WMT = Ballin in China. Forget the China growth story or any of the other myriad angles to this, that alone is a 1.3 Billion person change in favor of Walmarks.
That all being said I don't think GOOG's growth is going to slow down any time soon since it is basically scaled to the growth of the series of tubes. THAT also being said, its got a typically sky-high valuation as is, and there's 0.00% chance they're paying a divy any time soon, so....
That all being said I don't think GOOG's growth is going to slow down any time soon since it is basically scaled to the growth of the series of tubes. THAT also being said, its got a typically sky-high valuation as is, and there's 0.00% chance they're paying a divy any time soon, so....
Posted on 1/18/11 at 10:40 am to kfizzle85
quote:
GOOG = No-China. WMT = Ballin in China
I thought WMT had trouble getting into China back in the 80's. I could be wrong though.
Posted on 1/18/11 at 11:00 am to NELAtigers
Google will always have trouble in China. They want to be a filter for the world's information, so does the Chinese government.
Posted on 1/18/11 at 11:20 am to NELAtigers
Providing low cost goods to a bunch of poor people = political boon for a bunch of half communists. Providing endless and unfiltered information to a country bursting at the seams trying to break into the 21st century = not a political boom for a bunch of half communists.
Posted on 1/18/11 at 11:34 am to NELAtigers
I wouldn't touch it. The only major tech investment I'd be even more scared of is an investment in facebook by one of Goldman's (now foreign) clients.
Posted on 1/18/11 at 11:36 am to RedStickBR
The GOOG/AAPL/FACE triumvirate.
Posted on 1/18/11 at 11:40 am to kfizzle85
It reeks of bubble. Especially the fb nonsense. If anything, GS investors will buy a piece just bc GS is making them feel special by offering them a piece of the pie. And now that GS has fumbled their ability to offer FB shares to US investors, is it even worth as much anymore? I guess they're devising ways to fleece a bunch of foreign investors as I type this.
Posted on 1/18/11 at 1:18 pm to RedStickBR
quote:
It reeks of bubble
what makes you think this? i am not trying to be a smartass. just trying to figure out if i am missing something.
Posted on 1/18/11 at 1:33 pm to NELAtigers
Do you think Facebook is worth 50 billion on revenues of 1.86 billion?
I don't even know if Facebook will be that big of a deal in, say, 10-15 years. But that's just me. I could see that market becoming more specialized, i.e., individual social networks for doctors, lawyers, bankers, gays, blacks, asians, etc.
We've already seen this with TV programming. Nowadays you can find a channel for just about any interest you may have. And the big boys in media usually aren't able to solely hang on to all of these diversifying interests. Why should Facebook (especially considering the much lesser barriers to entry)?
Maybe it works out, but I think the risk is monumental in buying shares which reflect a 50 billion dollar valuation on only 1.86 billion in revenues last year and increasing reluctance to participate from foreign companies (see Russia, which to date as been able to thumb its nose at FB).
I don't even know if Facebook will be that big of a deal in, say, 10-15 years. But that's just me. I could see that market becoming more specialized, i.e., individual social networks for doctors, lawyers, bankers, gays, blacks, asians, etc.
We've already seen this with TV programming. Nowadays you can find a channel for just about any interest you may have. And the big boys in media usually aren't able to solely hang on to all of these diversifying interests. Why should Facebook (especially considering the much lesser barriers to entry)?
Maybe it works out, but I think the risk is monumental in buying shares which reflect a 50 billion dollar valuation on only 1.86 billion in revenues last year and increasing reluctance to participate from foreign companies (see Russia, which to date as been able to thumb its nose at FB).
This post was edited on 1/18/11 at 1:34 pm
Posted on 1/18/11 at 1:35 pm to RedStickBR
i thought you were saying GOOG reeks of bubble. i agree with you on fb.
Posted on 1/18/11 at 1:36 pm to RedStickBR
Without googling I'm close to 100% positive Digital Sky is a Russian firm.
Posted on 1/18/11 at 1:40 pm to kfizzle85
That's an interesting point. They are Russian. Just last week, however, Businessweek ran an article detailing how FB was having trouble making inroads into Russia and that it was really just a luxury application for Russia's bourgeois.
I'm just leary about this valuation from an investment standpoint. I don't have access to Goldman's offer myself (and it ain't because I'm an American)
I'm just leary about this valuation from an investment standpoint. I don't have access to Goldman's offer myself (and it ain't because I'm an American)
Posted on 1/18/11 at 1:40 pm to NELAtigers
It all reeks of bubble to me. FB was the easiest whipping boy.
ETA: And bubble isn't always a bad thing. It can be profitable. Just keep your finger on the sell trigger.
ETA: And bubble isn't always a bad thing. It can be profitable. Just keep your finger on the sell trigger.
This post was edited on 1/18/11 at 1:41 pm
Posted on 1/18/11 at 1:47 pm to RedStickBR
Someone put up an awesome graphic a few weeks ago on the OT that showed worldwide FB activity. I'm with you on everything else, I just wanted to point that out.
Posted on 1/18/11 at 1:50 pm to kfizzle85
There's no doubt they're dominating now, but if your shares were restricted for five years, could you stomach sitting on shares which reflect a 50 bill valuation in a largely untested market?
Also, remember when Zberg called FB the fifth largest country in the world? I think that put things in perspective.
Also, remember when Zberg called FB the fifth largest country in the world? I think that put things in perspective.
Posted on 1/18/11 at 2:02 pm to RedStickBR
I have nothing to back this up but my gut feeling, but I think FB will be bought out by someone for a lot less than 50 bil. I think GOOG could see FB as a great opportunity to expand its advertising and consumer data gathering. FWIW
Posted on 1/18/11 at 2:30 pm to NELAtigers
I'm not sure which I find more unlikely (or how to rectify this irony): Google buying facebook, or facebook being sold for >$50 Billion.
Page 1 of 2
Popular
Back to top
Follow TigerDroppings for LSU Football News