The Ignorant Investor

Analysts Brush Off Report Google Shares Could Be Halved, Say It Will Continue to Be Juggernaut

NEW YORK (AP) -- The idea of Google Inc. shares losing half of its value -- a whopping $50 billion -- was soundly brushed off Monday by Wall Street analysts who believe the company will continue to be a technology juggernaut.

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However, analysts who cover Google said concerns pointed out in [a Barron's]story aren't anything new -- and certainly not enough to cause shares to fall by 50 percent, as the story suggested. In fact, a number of analysts even reiterated stock price targets that top $500.

I stopped listening to stock analysts years ago, but I recognize that the rest of the market does still believe their methods- fundamental, technical, ouji board, whatever- are sound. Google has had a bad week or two, and now the analysts are out in force pumping it up. They've had a chance to back off their $500 price targets for 2006, but they're not budging.

So let's agree to meet back here on Dec. 31st and see where Google is then. I'm going to pick $300 per share. If I'm wrong, I'll admit I made the wrong call. But if my estimate ends up closer to reality than their estimates, I get to take the elevator up to their well appointed Wall Street offices and be top dog for a day. You know, get to romp around on their furniture and lift my leg up and urinate on their hand-made Italian loafers while laughing at them for being out-analyzed by someone who doesn't know jackshit about economics, technical analysis, or how to suck up to one's superiors on the investment banking and brokerage side.

I guess if I wanted to really put my money where my mouth is, I could short Google. But I've never shorted a stock, and I'm not about to start now. That kind of thing is for professionals using other people's money. Instead I'm sticking with just shooting off my mouth.