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Technology Stocks : Applied Materials No-Politics Thread (AMAT) -- Ignore unavailable to you. Want to Upgrade?

To: Proud_Infidel who wrote (14806)	5/5/2005 10:10:04 PM
From: The Ox	Read Replies (2) \| Respond to of 25522

I know you love to put down GOOG but their revenue growth rate was over 50% higher then AMAT's over the last year and that was while AMAT was growing revs at 80%!! Whether or not they deserve to have a P/S multiple 5 times higher is certainly questionable. Keep in mind that AMAT's revenue gains year over year were almost 80% but that was after a couple of tough years. GOOG's revenue gains during the same period of time were astronomical in comparison. Any company with a price to sales ratio of 16 plus had better continue to grow revenues at a pretty high clip. AMAT's expectations are to grow at 17% next year while GOOG's estimated revenue growth is over 40% (or more then 135% faster then AMAT). EPS wise, GOOG is expected to generate more the $6.50 next FY while AMAT is expected to earn $1. This appears to justify some of the 5 to 1 P/S difference, imo. I'm not saying everyone should sell AMAT and buy GOOG, since an incredible amount of growth has already been factored into GOOG's share price. But Brian, I think you need to face the reality that the numbers are extremely impressive for GOOG. jmo

To: Proud_Infidel who wrote (14806)	5/5/2005 10:31:45 PM
From: Return to Sender	Read Replies (1) \| Respond to of 25522

Brian, it's hard to believe but unlike GOOG there are actually Internet related stocks like UNTD that actually have lower P/E's than AMAT and a much higher dividend! finance.yahoo.com When a real long term bottom forms and the Investors Intelligence Poll has had more bears than bulls (for the first time in years), the volatility indices have reached nose bleed heights, all the BP Indices have traded below 30 but are setting positive divergences along with the market breadth indicators I hope you will be the first to admit that there are better ways to time a long term bottom than complaining about low P/E's and the price of Google stock. ;-) RtS