Google's now selling for well within the initial price range it had for its offering but was forced to lower from after Wall Street dogged its value. Now its underwriters are apparently bullish on Google and think it will go even higher.
Hmm. Do you think that if Google had just done a traditional IPO, where a few banks made tons of cash, they have supported it going out higher? I sure do.
The New York Times has a good article looking at this today: Google Shares Just May Be Winners After All. I like the part where worries that Internet growth was slowing in August are cited for a reason for some analysts being shy of the stock then. Now growth appears to be accelerating, so everything's OK. In other words, we're valuing a company's long-term prospects off a one-month trend?
Predicting the value of a company is definitely a mystery to me. But sadly, it's stuff like this that doesn't leave me with a lot of faith in the predictions of those who are supposed to know how.
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