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Is Google Worth $182.4 Billion?
By JLP | October 3, 2007
I just saw this on the Drudge Report. Google is nearing $600 per share and currently has a market cap of over $182 billion! Incredible!
The question is:
If you had $182 billion, would you buy Google (the entire company)?
My thoughts later, right now I need to go to bed.
Topics: Investing | 12 Comments »
October 3rd, 2007 at 4:18 am
if i have $182 billion i wil not buy google. i wil buy 60 percent of share og google
October 3rd, 2007 at 8:08 am
absolutely not
October 3rd, 2007 at 8:18 am
If I had $182 million, I would put it in the bank and live happily ever after…
October 3rd, 2007 at 8:40 am
I certainly wouldn’t buy Google for $182 Billion. The company has a higher market cap than a ton of other older and very established companies such as INTC, CVX, AIG, etc. It actually isn’t far behind MSFT now. Amazing.
October 3rd, 2007 at 9:28 am
This is a classic Buffet question, He never invest in a company unless he will buy the entire company, In my opinion $182 billion is too much for google, Yes people will say it’s a growth play and Etc, But the question we should ask is if the US economy is hit with an recession how much is google worth, So my answer is no I will not buy the entire company I will not even buy a single share at this price.
October 3rd, 2007 at 2:20 pm
$182b, no way I will take that money and buy 5 smaller companies.
However I may buy some shares in GOOG
October 3rd, 2007 at 2:35 pm
There isn’t a single number to back any of these “no way”s up. Just putting a big number on the table and saying “would you buy it” is meaningless. One would hope the people who are paying $182 billion for the company (current investors) have done a little analysis.
October 3rd, 2007 at 7:38 pm
No, I don’t think I would buy Google for $182 billion. I think Google is a great company, but there are other things I would be doing with that much money.
October 3rd, 2007 at 9:41 pm
It would be a Buffet question–except for the fact that Buffet doesn’t buy “growth stocks.” Growth stocks always seem overvalued because their prices factor in future growth potential. Obviously none of us would buy Google for $182 million. That would be ridiculous. But if we trust Sergey & Larry, and believe in the growth of the Web (in many ways led by Google) it may pose a more difficult question.
October 4th, 2007 at 3:44 am
If everyone invested like Buffet, the world would be a lot poorer and Silicon Valley would not exist. His skill is in finding the undervalued sure thing, not in taking risks.
As for Google, it’s definitely in the “late hubris” phase of a tech company: wild growth and massive hiring justified by the need to “stock up on talent”, and perks designed to keep you permanently at work. Pretty much every tech company that lasts for awhile goes through this phase, and the trick is in how they survive their first major trip-up. Cisco, Amazon, Yahoo, Apple, and even MSFT all went through this phase and survived, but many companies like Silicon Graphics – which built Google’s current HQ – did not.
Google’s model is to have lots of little skunkworks groups throw out “beta” products and put them onto its vast infrastructure, and see what gets taken up by the marketplace. The biggest weakness with its model is that Google is impatient – it wants success in O(months) and will quietly kill projects if they don’t take off quickly, but it often takes several iterations of a technology before you start to get it figured out.
Frankly, outside of ad-driven search, not much has taken off money-wise, although Google is skilfully leveraging its muscle in various ways to try to get into wireless broadband and other areas.
I’d probably pass on Google at the moment, but they have as good a shot as any to hit another home run if they have a bit of luck.
April 18th, 2009 at 5:16 pm
I think i would buy google but i would offer them more, becasue it would be fun to go arond and say “I own google” ;DD
January 4th, 2010 at 3:24 pm
No I would not buy Google or any part there of it’s over priced by $575.00 a share and the worm will turn in the market crash of 2017.