Google Nears July Lows, High Beta Stock Selling Overdone

Much has been made about investors being much more risk-averse in these turbulent, volatile markets and sending down high-beta stocks like Google Inc. (GOOG). In fact, the search behemoth has been creeping lower, falling as much to surprisingly close in on its July lows (while at the same time the major market indices have come off their lows), and is currently extending its losses, down in lunch hour trading close to double digits to $465 on mediocre volume of 1.6 million shares. But the selling seems overdone. Google is priced at a teenager-like PE on a forward earnings basis when it is expected to grow revenue by 26% and earnings by 23%. And its strong search position remains unchallenged, with Google accounting for 61.9% of July searches, up .4% from June according to comScore. There are only so few times when Google’s shares are at such a compelling valuation, and this is one of those times.