GOOG Stock soaring After Pokemon Go launch!!!!

[Centaura]

The recent hype around an online Pokémon game showed one thing: that investors still have Alphabet Inc(NASDAQ:GOOG) stuck in a box labeled “online advertising.” They don’t yet see GOOG Stock for what it truly Is.Does Google make most of its money from advertising revenues? Absolutely, but that isn’t what made the company invest in Niantic—a software developer that came up with the “Pokémon Go” game—and it isn’t what will drive the company’s growth in the future.

Google stock has been one of the best performing in history. Since the company’s initial public offering in 2005, share have surged over 1,200%. A $1,000 investment in GOOG stock would be worth over $12,000 today.Yet, GOOG stock’s valuation is not that high. Trading at $680.04 per share, Google stock has a price-to-earnings multiple of 27.67X. If you use its expected earnings for the next calendar year, you’d see that the company is trading just above 17 times its forward earnings. If things turn to be the same there will be some one to take over for GOOG Stock.

[John]

At a price/earnings ratio of 27.67%, GOOG is at almost double the
average historic valuation of 14. So instead of being the best
performing, the Google stock may simply be the most bloated stock in
history, and as the old saying goes, the bigger and more bloated they
are, the harder they fall.

Incidentally, forward earnings are public relations numbers created by
marketing departments, and have historically turned out to be almost
double actual earnings.