The idea that Google went bargain hunting would be stronger if anyone genuinely believed that what has happened to the market in the last couple of weeks is short term.<p>The reality is that before the recent drop stocks were over valued so all he's really saying is "they only paid a relatively small amount above a previous over valuation".
I never understood this notion that the "fair value" of a company is somehow tied to anything but the price of its stock. If the fact that a stock used to be worth more than it is now means that it's somehow under priced then you'd have an easy arbitrage strategy on your hands. Google paid a 63% markup even though this author spins it as though they paid only 10% above some "true value".
by that logic when microsoft was trying to buy yahoo a couple of years ago they were getting a huge discount compared to the 2001 high. Microsoft should have really upped the offer.