Next Stock Purchase – Google (NYSE: GOOG)

Google needs no introduction, as anyone who uses the Internet most likely uses their services every day.  I’ve been wanting to buy Google stock for many years, but thought it was just too pricey to get in — and it continued to climb higher and higher.  However, recently Google has kind of hit a ceiling and has fallen about $50 a share (or 10%) since it went on my watchlist and the stock has not done much in the last two years.  Now that the stock is trading well under $500 along with an attractive valued based price-earnings ratio of 18, I find the stock getting very attractive, especially when you consider this is still a growth company.  The company has over $30 billion in annual sales, of which almost 30% of goes to the bottom line.  With so many resources at its disposal, along with some of the best and brightest engineers in the world, I’m sure there are many intriguing projects in their pipeline to continue their rampart growth.  Therefore, I’ve decided I’m getting in at this price point.

Google currently trades at $474.88 per share.

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2 Responses to Next Stock Purchase – Google (NYSE: GOOG)

  1. Len pacer says:

    Just added to my position at 475 on Fri, so obviously agree with you. But you don’t mention their potential anti trust problems in US and Europe. You may want to factor that into your decision.
    Best of luck.

    • Good point on the antitrust probe, but I’m not overly concerned. May have a short-term impact on the stock, but I think the long-term prospects (i.e., next 5 years) for Google are very good — lots of exciting things and experiments going on inside the company that will be fun to watch how they pan out over the next few years. I think we’ll be happy that we’ve bought in at these prices.

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