For those of those interested, Google began trading today (GOOG). But it hasn't gone according to plan.

Originally they estimated that the stock would open at $108-135/share, but after some major setbacks and recent "bad publicity", they opened at $85/share and only offered less than 1/2 the amount of shares they had been planning on releasing. But it closed today at around $100, leaving those lucky few who got in at $85 a 17% gain.

Those who bought at $85, sell now. Those who don't own any Google shares, don't buy any.

You're probably saying "Why not invest? Its selling below the estimated selling price and they've already had a 17% gain." Well, think again. All over-hyped IPOs (especially technology ones) have this first hiccup where they shoot up, only to come crashing down a few weeks or months later.

But is Google a good investment? Almost all signs point to no...

1. They are trading at 50 times earnings. That is a WAY too high P/E ratio. It's impossible to sustain that type of ratio for long.
2. Future earnings are too difficult to predict. Revenues went from $86 million in 2001 to nearly $1 billion between 2001 and 2003. So what do the next five years hold? The next two years? The next six months?
3. It's a fad. I'm not saying google isn't a good company (I'd love to work for them); but they came up so fast, they can easily fade away just as fast. Especially when all their earnings are based on website ads, and many popup blockers now block ads on the page as well (bad news for those looking to make money from ads). When your business focuses on new technology, you have to constantly work to ensure you don't fall behind.
   
4. Stockholders have very limited control. The management's stock gets 10 votes/share; the public gets 1 vote/share. While this is good for ensuring business operates as it is already (no big changes by stockholders), the business is being run by technology pro's who don't have as much business experience as major shareholders would have.
   

In the end, I think google will be a nice company to watch, but not to buy. It's too risky, overpriced and in an industry notorious for "bubbles." If you do want to buy some, at least wait a few months to let the IPO hype end and normal trading begin.