Googles IPO To Long In The Making?

    July 21, 2004

With Google’s landmark IPO expected to be begin this week, it does seem like time is not going to be on their side.

Though no one is really certain what the stock price will be, it would be a fair bet that number would have been higher if the IPO taken place a month or two ago when if was first announced, according to George Mannes, senior writer for

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.

Jeremy Muncy is a staff writer for