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Google: How low can GOOG go?

GOOG has had a rocky week, as the Yahoo Finance chart below illustrates.It has been a tough week overall for the stock market, but GOOG has unique Wall Street issues to concern itself with.
Written by Donna Bogatin, Contributor on

GOOG has had a rocky week, as the Yahoo Finance chart below illustrates.

It has been a tough week overall for the stock market, but GOOG has unique Wall Street issues to concern itself with.

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Before the new year, Fast Company magazine asked for my take on Google’s prospective financial performance in 2007. 

In “Google due for a fall?” I present my analysis of GOOG 2007:

In 2007, GOOG will be negatively impacted by a continued decline in the growth rate of Google's earnings per share. Analysts forecast a 36% growth in EPS for Google in 2007 ($12.63), versus its 78% rate in 2006 and a 172% rate in 2005. As Google's earnings growth slows, its share price to earnings ratio will also fall; GOOG's 2006 PE of 50 is likely to dip to 36 in 2007. A GOOG 2007 fair value of $454 (36 PE X $12.63 EPS) is below its 2006 closing price.

GOOG is down several points again today, trading in the $442 range.
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ALSO: How Google’s new business model hurts GOOG and Google: Who needs Yahoo Finance?

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