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I see two questions, not three?!
3) Future is positive if not bright. The management is definitely very competitive, as recently seen by the acquisition of youtube. This is also consistent with their strategy to acquire other smaller 'companies' or 'firms' early to edge out their competitiors, such as yahoo!. I don't consider it monopoly, but they have been very quick in snatching acquisition opporutnity. Some say that acquiring youtube is a failure because of the litigation issue, but I believe that GOOG has made the right move because 'watching video online' IS the trend now, and technology is all about trend.
Who's the Person of the Year, according to the Times magazine? YOU. not the Chinese president, nor Bush. YOU. We are the Person fo the Year because of our ability to communicate faster, and upload videos and to get first-hand information. Police abuse? busted. Best moment in your life? Shown. attract potential employers by makinga video? no longer a dream. With youtube, you can do everything.
And GOOG got it, first.
If the line of record that GOOG shows is not enough to convince people that they can remain competitive in the years to come, I don't know what willl.
4) Good question. PE ratio = 64.26 ( Idon't have the PEG ratio with me here ,but I imagine it to be quite high as well?) and that's 127.25% above the industry. Does this mean that it's expensive? No. It simply reflects the potential that Google has. Yoru question about retiring from GOOG and he is only 40+ or so, that I don't know, but I know that GOOG has just been selected as the best company to work with. What does this tell you about Google? They take care of their people, and Human Resource, in my opinion, is an extremely important asset that again will give them a competitive edge. Research (in business about organization and management) shows that there is a positive correlation between job satisfaction and job performance, job satisfaction and commitment, and a host of other positive outcomes such as organizational citizenship behavior. GOOG in this area thumbs everyone.
In terms of recent price, GOOG is trying to beat the resistence again. Should it break, it may be a good time to buy. I hope that this will answer people why GOOG is 160% up a year ago while Yahoo down by 20%? The high PE (or PEG) ratio doesn't mean that it's expensive as a result of people betting (or gambling) on the future; it's a truthful reflection of their competitive edge.
J
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