The Bay Area housing market is all set to “kick-it-up-a-notch” as many newly minted Google millionaires are going to go shopping for palazzos. TheStalwart has details on the insider selling. For those of you who missed out on the Google IPO, here is your second chance. The company plans to raise $4 billion. Its not going to be risk free, according NYU finance professor Aswath Damodaran tells Fortune.
> Google is currently worth just $110 per share. And this assumes that the company will grow like gangbusters, taking in $49 billion in sales by mid-2015, compared with just $3.2 billion last year—an increase of some 1,400%. For his part, Damodaran is baffled that anyone would pay close to $300 per share for Google. To justify paying this much, he says, you will need compounded revenue growth of about 40% a year, which would generate revenues of $135 billion and operating income of almost $30 billion in ten years.
But what will they do with all that money? No not for a christmas party! Paul says with that mich money they can buy 5.4 million servers. And buy a nuclear power plant to power those servers!
4 thoughts on “Google Sells and Market Yells”
Google should buy NASA. But I guess if they wanted their name on a satellite, they should simply enter the contest at http://www.dishnetwork.com. DISH is reaching for the stars and going to put the name of a customer on their next satellite and launch it next year. That’s pretty cool, but google will end up spending a lot more doing it themselves.
Any chance that Google raised $4 billion this week and now has $7 bil in order to buy Skype? Hmmm…