$108 to $135 a piece for Google IPO spells disaster not only for Google but also entire Tech Stocks!
Rohan Solkar, Special Correspondent
July 26, 2004

Every time we see this kind of euphoria, the tech stocks collapse. While the US tech stock market is in the process of experiencing a fascinating collapse of tenth order, Google comes out and prices IPO at $108 to $135 a piece. 

Firstly, most of the search engines are obsolete. Mostly Web surfers are frustrated when they need something that is not available easily. On top that, Web security infrastructure has gone absolutely nowhere. 

Is Google worth $108 or $135? How about $1008? Anything is possible. But stocks are valued based on current assets and future potentials. When current asset and earnings wise Google is hopeless, investors are betting for the future. 

According to Alexa, a Web audience measurement company, Google holds number four position as most popular Web portal. Yahoo is number one. Among all those who use Alexa tool bars, Yahoo has reach of approximately 275,000 per million Web users. Google has 137,000 reach.

Google and Yahoo both are over priced and not only ready to collapse, this kind of euphoria shows that the entire tech stock group has again reached the mini bubble ready to burst and collapse.

A common proverb in the market is : When market goes down, it goes down like an elevator full of people. No exception here either. Every one is eager to own a piece of Google!

While all these hype is taking place, Google and other search engines get hit with the new killer version of MyDoom. MyDoom is slowing down the Google and other search engines and some Websites are warning that it may be a real killer.

Search engine technologies will also get completely revamped.

Can Google quadruple in price? Yes! Everything is possible in Stock market since human emotions dominate markets! But common sense says it is time to be little cautious on the techs specially an IPO coming out at $108 to $135 a share.