Is Google a stabile company at the moment?

This is actually a very interesting question. Everyone is aware of the fact that Google is very big and earns a lot of money. This was also visible when Google went public at the end of 2004. Google’s stock boomed from $80 till around $450. The problem is that Google is still a relative new company and is fully dependent on advertisements. At the moment Google is financial healthy, but the market stock isn’t stable. There are two problems with the current stock. The first problem is that the price is quiet unrealistic. If the price remains above the $400 it is possible that the stock will be divided in smaller stocks. The second problem is the enormous movement of the stock related to news about Google. This also shows that investors don’t see Google as a stabile company. In February 2006 the CFO wasn’t completely optimistic about the future of Google which resulted in a drop of 16%.