Google IPO Raises $1.7 Billion

The IPO represents 7.2% of the company’s shares and values Google at US$23.1bil, well below the US$38.7bil market capitalisation of rival Yahoo Inc. Two-day Gain = 27.4% Jefferies & Co. analyst Youssef Squali initiated coverage on Google with a buy rating and a fair market value he assessed at $115. That $115 target -- 11.6% higher than where Google was trading Friday morning -- follows earlier reports from Squali in which he estimated Google's fair market value to be first $140 a share, then in the range of $125-$130.

Why is Google IPO important for entrepreneurs, especially the ones in the tech industry? In my opinion, it tells us that the equity market has loosen its purse. It may be a signal that investors are ready to jump back in. Could the Google IPO serve as a catalyst for the next boom? A prelude to the next rise of the "true" internet boom? Who knows? Remember Intel in the 80's and Netscape in the 90's? Ok, the 90's was the dotbomb era. Only time will tell...

Btw: I don't have any shares in Google (GOOG) yet. It's way too pricey right now.

Comments

[G.]

Do you think the price will drop soon? Those in to make a quick litle profit? Or, are tehse buyers who wil want to hold as Google grows and grows?

[jeff]

The price to perfection was done by design. I think they wanted to raise the barrier to entry for investors. They wanted early investors to hold on and also new investors to make a commitment. There's no doubt it's a risky investment if Google doesn't deliver.