It's all over the news today - Google dropped its target price. Burnham's Beat probes a bit deeper.
Is Google a bargain? I have hard time believing that their life will continue to be as high flying growth as it has been for the recent years. Competitors are catching up and Microsoft has caught their eyes on Google as well. How do you continously overperfom the investor expectations which are already discounting all imaginable future growth prospects in the search business? Basically that's the reason why every stock will eventually fail from the Wall Street perspective. No matter how profitable is your business - in the future you have to overperform yourself. Nokia was a good case in point before the major stumble. The stock price dropped heavily after announcement of quartal results which were as they had indicated but less than the analysts had expected them to top the company's previous estimates.