Cramer: "Google's Still Cheap"
Cramer: "Google's Still Cheap"
"Google's Still Cheap"
By James J. Cramer
RealMoney.com Columnist
7/14/2005 8:38 AM EDT
"Google's (GOOG:Nasdaq - commentary - research) cheap.
OK, I said it.
If Google can do the 2007 number Lehman put out this morning -- $9.38 EPS -- you are talking about a stock that's just plain inexpensive. You would be buying this company at less than 1 times its growth rate of 33%.
That's nutty cheap.
If you use the Yahoo! (YHOO:Nasdaq - commentary - research) comparison, it should sell at $500 now. Of course, Yahoo! could be overvalued, so you could go wrong with that.
But as I read through this Lehman estimate bump, I am blown away at the earnings power of this money machine.
The stock goes higher.
I am sticking by my $350 target, though, as I think that $7.00 next year --not $7.53 as Lehman says -- is still more realistic until I know more. "
(in www.realmoney.com)
By James J. Cramer
RealMoney.com Columnist
7/14/2005 8:38 AM EDT
"Google's (GOOG:Nasdaq - commentary - research) cheap.
OK, I said it.
If Google can do the 2007 number Lehman put out this morning -- $9.38 EPS -- you are talking about a stock that's just plain inexpensive. You would be buying this company at less than 1 times its growth rate of 33%.
That's nutty cheap.
If you use the Yahoo! (YHOO:Nasdaq - commentary - research) comparison, it should sell at $500 now. Of course, Yahoo! could be overvalued, so you could go wrong with that.
But as I read through this Lehman estimate bump, I am blown away at the earnings power of this money machine.
The stock goes higher.
I am sticking by my $350 target, though, as I think that $7.00 next year --not $7.53 as Lehman says -- is still more realistic until I know more. "
(in www.realmoney.com)
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