Barron’s claim Google share set for a fall

Weekly financial newspaper Barron’s has said in a report that they expect the share price of search engine giant Google to fall down to acceptable levels in a similar fashion to how eBay’s and Amazon’s share fell after a boom some years back.

The media group said that Google’s shares are overvalued at the current price as they are trading at 37 times next year’s expected earnings. In addition, Google is also seeing a slowdown in their growth rate.

The report said that the company now has the 15th largest market capitalization among U.S.-traded shares and its price-to-earnings ratio is very high compared to similar sized companies based in the country.

Google is expecting to produce a growth rate of 81% in the current year. However, market analysts believe that this would fall down to around 33% next year.

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