TL;DR

The article uses speculative valuations to hype Google’s stock, ignoring market realities and the risks of investing in hyped-up tech. It’s a classic pump-and-dump scheme, potentially leading to widespread financial losses for unsuspecting investors.

Story

Another day, another ‘Google is undervalued’ prophecy. Sounds familiar? Like the whispers before the 2008 crash, or the Enron hype, this reeks of selective optimism. The author cherry-picks Google’s successes while ignoring the glaring red flags. They claim ‘if OpenAI is worth $500B, then DeepMind is easily $500B.’ This ‘if A then B’ logic is pure speculation, ignoring market realities. Remember, valuations aren’t based on potential; they’re based on proven revenue streams. Google’s cloud division, while promising, isn’t consistently outperforming AWS or Azure—and that’s a huge risk. Plus, remember the dot-com bubble? Tech giants were once hyped to similar extremes before their spectacular implosions. Their argument that a Google breakup would magically unlock value is also naive. Breakups are messy, often destroy shareholder value, and create new market uncertainties. This isn’t about Google’s underlying tech (which is impressive); it’s about the inflated expectations and dangerous, unfounded valuation arguments that are being made. Essentially, the author wants you to ignore the current financial landscape in favor of a future that isn’t guaranteed. It’s a classic pump-and-dump strategy dressed in technical jargon. ‣ Pump-and-dump: Creating artificial hype to inflate the price of a stock and then selling when it peaks, leaving investors with losses.

The human impact? Unsuspecting investors losing their savings betting on a fantasy. Remember the 2008 housing market crash? Regular people lost their homes. This situation has the same potential for widespread economic damage.

Lesson? Don’t buy into hype. Focus on proven revenue, sound financial statements, and realistic projections. Treat these ‘undervalued’ claims with extreme skepticism. Diversify your portfolio and never invest more than you can afford to lose. Remember Enron—they had brilliant minds, but their financial statements were cooked. This Google analysis shows the same disregard for facts in favor of unrealistic optimism.

Advice

Ignore hype, diversify your portfolio, and always verify claims with reliable financial data. Never invest more than you can afford to lose.

Source

https://www.reddit.com/r/stocks/comments/1mkzgmj/you_dont_own_enough_google_another_google_is/