October 19, 2006

Epistemology vs. Equities

Just a quick, gratuitous swipe at my blog brother, JohnGalt. Be careful predicting in a public forum.

On January 27, I started one of our famous internecine conflicts, defending Google. They had capitulated to Communist censorship in China, but I pointed out that they had a market capitalization to email home about.

Mine is still that this company is justifying a 50 multiple to its shareholders. If you pay $40,000 for 100 shared of GOOG, you are probably not too keen on their missing an in on the fastest growing market in the world.

On January 30, JohnGalt commented "'If you pay $40,000 for 100 shares of GOOG' you are a moron."

The Wall Street Journal notes Google's Net Nearly Doubles As Ad Sales Continue to Sizzle - WSJ.com and sends out this email alert:

Oct. 19, 2006

Google's profit nearly doubled and revenue soared 70% to $2.69 billion as the Internet giant continued to gain market share in online advertising. Excluding payments made to advertising partners, Google's revenue rose to $1.86 billion from $1.05 billion a year earlier. Google continued to expand at a frantic pace, hiring 1,436 people in the quarter, leaving it with 9,378 full-time employees.

Google's shares gained 6% to more than $450 after hours.


We can disagree on China and now add the PC policing of YouTube, but I have to point out that jg turned his nose up at a 16.7% annualized return.

Just sayin.


Google Posted by John Kranz at October 19, 2006 5:34 PM