Google’s IPO To Long In The Making?
By Jeremy Muncy
Staff Writer
Article Date: 2004-07-21
With Google's landmark IPO expected to be begin this week, it does seem like time is not going to be on their side.
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What's with all the skepticism, right? This is Google, the search engine giant. Some investors are looking to other Internet stocks to analyze their trends. With the example of Yahoo! (YHOO-Nasdaq), they had a booming first half of the year, then turned around and had a less then brilliant performance in the second-quarter earnings report two weeks ago.
This is no proof that the Google IPO will be a dud. The stock has a great demand, but probably would have more of one a few months back when the IPO news first broke.
Google will be setting the offering price by using a Dutch Auction Model, as reported in WebProNews. This auction will make it tough on investors who have to decide what they are willing to pay for some shares of Google, since the auction style of offering will dictate prices, not the investment banks.
Among the chief concerns, according to an investor who spoke on condition of anonymity, is growth in the pay-per-click search business that is the core of Google's revenue.
About the Author:
Jeremy Muncy is a staff writer for WebProNews.com
