CompuWorld

Google Shares Set to Fall

Monday, November 27, 2006 by Salman Siddiqui

Spending on research and development, sales and marketing and general and administrative expenses are all expected to outpace revenue growth this year

Giving your hand to everything, trying to be the king, to be the champ is not always easy. The king of internet may see fall in business next year, the weekly financial newspaper Barron's reported Sunday.

Barron's said Google is overvalued because it trades at 37 times next year's expected earnings and because its growth rate is slowing. It also noted that Google now has the 15th largest market capitalization among U.S.-traded shares, and its price-to-earnings ratio is two to three times higher that of similarly sized companies.