Financial Analysis

Paper Summary:

This paper discusses the strength and performance of three Internet based companies: Google, Yahoo!, and eBay. The perspective for investment is based on a client with $10 million to invest but who also desires a diversified portfolio. The paper explains that while investing in all three companies is currently a good choice, this by definition is not very diversified, since all three are Internet dependent and based companies. The paper discusses the recommendation that is to place $8 million in the three companies, with most being in Google and the remaining $2 million in more traditionally stable shares such as utilities.

From the Paper:

"Google is an Internet based company that has captured the imagination of Wall Street as well as Main Street. Google's most recent stock quote was $404 and this price puts it in fairly rarefied company since it refuses to split. Google engages in web search technology where it has developed a business model built on associated service/product placements with every search. Additionally, Google also operates other Internet based lines of business such as AdWords, AdSense, Google GMail, Google Earth, Google Search Appliance and a host of other functionalities that have revolutionized what the Internet has traditionally been used for. Google's financials justify a substantial investment. Its current market capitalization is approximately $119 billion, its price to earnings ratio is 47 times earnings (Google)."

More papers on Financial Analysis:

• Analytical Essay # 136712 : "Illinois State Financial Analysis"
• Analytical Essay # 70675 : "Financial Analysis"
• Analytical Essay # 89366 : "Wendy's Financial Analysis"
• Term Paper # 125969 : "Financial Analysis and SOX"

APA Citation:

MLA Citation: