The hype-o-meter is outta control!!
But Hagstrom calls Google, Yahoo! and Microsoft (MSFT) "valuation anomalies" -- stocks that look expensive but might be considered undervalued, given the companies' robust growth prospects.
MSFT has robust growth prospects? The company is pushing hard to do 10% revenue growth, and barely getting there. Is that robust?
He says the three global-search engines will gobble up most of the increasing business on the Web.
Ebay, Amazon, and every corporate website don't count?
Outside of advertising dollars, what in the world of business revenues goes to Yahoo and Google?
When did someone last buy something from Google?
Boosted by stronger-than-expected earnings growth, Google, the world's most popular search engine, has surged 136% over the past year to 404 a share, trading at 47 times analysts' earnings estimates for next year. Yahoo! has gained 8% to 40.11, close to its 52-week high of 43. It commands a price-earnings ratio of 53.
Uhmm, I thought this was an article about future growth, not last year's stock performance.
But Hagstrom predicts Google can expand its $120 billion market cap by 2.5 times over the next several years, surpassing Microsoft, while Yahoo, boasting a market value of $57 billion, can grow five times.
Can you say, no way. |
