|While investment analysts are predicting an eventual fall in share prices for google, following their intended internet auction, bets on Betfair predict the opposite- with odds currently favouring a rise in share prices. Betfair is one of the sites now banned from advertising via google, following the search engine’s decision to ban links to online gambling companies.|
The outcome of the online auction- known as an IPO- is starting to generate some interest on the site, and the trend so far contradicts the predictions coming from investors. Thomas Wyman, a fund manager with Husic Capital Management has said the following of the upcoming auction: 'This is one of the most hideous IPO's we've ever seen…[Google is] designing this to let the little guy play ball. But what's going to happen is they're going to make top dollar and the little guy is going to get screwed'. Wyman basically predicts that initial interest in the shares will push the price upwards, inflating them beyond their worth, resulting in a decline shortly afterwards which will see purchasers lose money rapidly.
Meanwhile Betfair is offering the reverse as the most likely option, with odds currently favouring that share prices will continue to rise. The betting opened on Friday and Hugh Taggart, spokesman for the UK betting exchange commented, “As more money comes into the market a more accurate reflection of market opinion will be formed”. At the moment the odds translate into a US$145 payback for US$100 bet, should the shares rise, and US$160 for the same initial bet should they fall.