Erdos Had The Number First

Googling For Gold It’s funny how BizWeek forgets copmanies like DEC when it talks about Google. One of the biggest problems that DEC failed to deal with properly was the fact that its Techs drove the marketing of their products.

Now it’s true, Google has the internet. The barrier to entry for any given product that google has is so low as to be zero. DEC, on the other hand, risked the company with some of their product investments. Google never risks the company on any product. They don’t have to. They’ve got some of the best minds in the world, and they let them work a small part of their week on their own projects. They’ve got 3000 employees, and they only need a couple of new products (or refinements) each quarter. They’ll get it. And, because the risk is so low, they can afford to implement nearly everyones ideas and see which ones are actually good. You want to talk about using internal markets, man, Google has got one of the best.

But then, there’s the stock price.
Buisness Week, my favorite whipping boy, seems to think that the analysist are right about google. That maybe the 800 Quadrillion dollars the stock is at right now isn’t where it should be.

But who really cares about analysts? Google is at 418.00 as of COB today. S&P analysist say that it should be around 365. Even at that price, unless earning are high (like the more-than 8 bucks that are expected), its P/E ration is still above 40.

But again, who cares? Everyone knows that Google is going to kill Microsoft. And in knowing that, they know that if they buy now they won’t have to kick themselves in 20 years for NOT buying it.