On your investment course’ day-one they tell you that stock price reflects the investors expectations for future yields. More than that means that the stock is overvalued. Some investment theoreticians/ gurus will claim that in the long-run this thesis is always true. Google’s stock behaves exceptionally in this context: investors seems to expect the firm to exceed analysts’ estimations. So can we say the stock is overvalued ? What will happen if the company stops to surprise us ??
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