Dan Gillmor on the Google IPO

“I don’t discount Google’s potential to live up to its valuation, and perhaps then some, because it has such rich possibilities beyond its search technology. The company is building an Internet platform that could well be a key part of the next generation of computing, in a much more fundamental way than mere search might imply.

But I have a weak stomach for speculation, and at these prices, Google’s stock leaves me queasy. You may have a higher tolerance for this kind of risk.

If you do, understand this. As the company itself says in its filings, you should be in this for the long term. You should be prepared to lose much of what you’ve invested if things go badly. In other words, don’t put your kid’s college fund into this IPO.

And you should absolutely heed the company’s warning, which it made again Monday: ‘If your objective is to make a short-term profit by selling the shares you purchase in the offering shortly after trading begins, you should not submit a bid in the auction’.” [From his column.]