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No matter how long or how deep a severe economic downturn, its residual effects can still be somewhat jarring, such as when a company with annual revenues of more than $182 billion is worth less on the stock market than one with $21.8 billion in annual […]

No matter how long or how deep a severe economic downturn, its residual effects can still be somewhat jarring, such as when a company with annual revenues of more than $182 billion is worth less on the stock market than one with $21.8 billion in annual sales. Over 100 years old, General Electric, long the vanguard of U.S. industrial might, ended today’s trading session with a market capitalization just a shade under $105 billion. That compares with the market cap of Google, which now stands at more than $108 billion. Granted, we’ve seen this movie before, during the last bubble, when Cisco Systems surpassed GE.

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  1. This should be corrected shortly, otherwise I will never invest again LOL

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  2. This is different than with Cisco because Google isn’t overvalued — GE is undervalued.

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    1. Good point Frank, though I am sure a lot of Google shorts would disagree with you :-)

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    2. That not what the market is saying, they are clearly saying that GE’s financial service unit exposure is wekening the whole corporation

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  3. It’s pretty clear that GE is overvalued. As much we all love Google, it is unsustainable for a company’s market valuation to be such a large percentage of the total advertising market value. The total ad market is around$480 billion. Online is 8% or $36 bil. Search is 50% of that or $18 bil worldwide. It can grow significantly, but at some point there are limits.

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    1. Rajiv,
      I have been looking for the breakdown of those numbers that you provided in your post. Could you point me in the direction that you found those numbers? I really appreciate it.
      Thanks,
      MacKay

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      1. The article I’m quoting from is: http://www.paidcontent.org/entry/419-zenithoptimedia-amid-growing-pressures-on-total-ad-growth-in-08-online-/

        If this blog doesn’t allow links then search for “ad spend market.” It’s the 3rd result.

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      2. You can find more detail on the break by percentage here http://www.webguild.org/2009/03/share-of-ad-spending-by-medium-october-2008.php

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  4. It’s Yahoo circa 1999 all over again.

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    1. oh snap…. what a great reminder of what goes up, comes down etc etc etc

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      1. Eh, the market will not take Google. The only thing GOOG has to fear is the Government(s). Well, and Itself.

        There *could* be another dot-webz bust coming but it would come from Facebook, MS, maybe Yahoo again, and definitely a lot/MOST of the recent upstarts (excluding Twitter – I believe Google would save Twitter if it ever needed saving. Contrary to Eric Schmidt’s wonderfully crafted sarcasmic statements about “ghetto email”, lols.)

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  5. [...] Than Goog Published March 31, 2009 Economics Om caused a stir with this post today: In Market Cap, Google Now Bigger Than GE. No [...]

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  6. The article I’m quoting from is: http://www.paidcontent.org/entry/419-zenithoptimedia-amid-growing-pressures-on-total-ad-growth-in-08-online-/

    If this blog doesn’t allow links then search for “ad spend market.” It’s the 3rd result.
    Oops…forgot to say great post! Looking forward to your next one.

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  7. [...] has a bigger market cap than GE. This economic downturn is the reverse of dot com bust, where companies with real assets are [...]

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  8. [...] Wondering what is the google market value? Well, it’s bigger then GM’s. [...]

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  9. [...] that Google surpassed GE in terms of market cap this week (probably a temporary thing), investing that cash might a be good [...]

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  10. [...] that Google surpassed GE in terms of market cap this week (probably a temporary thing), investing that cash might a be good [...]

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