[[GOOG]] Price 433.35
Everyone knows Google, and everyone uses Google, so why not own a piece of it?
Based on valuation, the stock is cheap and it’s now considered a value stock. It’s current multiple, meaning P/E ratio, is now less than it’s growth rate:
Current P/E: 32
Growth rate: 36%
PEG Ratio: 0.60 (less than 1 signals the stock is undervalued)
All of the information highlighted is enough for me to add to my position in Google, but the thing that really gets me excited is Android.
Android will allow users to create software for mobile phones sort of like the way Microsoft invented software for the computer. In my opinion, the cell phone is the new computer, so why not buy the next Microsoft.
Software development for mobile phones is in it’s infancy, and Google will have the competitive advantage when it takes off.
Check out this interesting article. The iPhone is already starting to attract software developers, and Eric Schmidt, the CEO of Google, sits on [[AAPL]] board, odd no? This trend will be huge and I am an big believer in it.
Google Android explained:
[youtube:http://www.youtube.com/watch?v=g4m73NXn7hY 450 300]
Take a look at Google’s chart since it’s IPO. The stock is currently sitting right at 50% retracement, will this act as support?
Update: So much for my bounce theory, it looks like Google will be under significant pressure due to Barron’s article.