Google Inc.'s (NASDAQ: GOOG) Google Apps project has gained steam (and customers) since its introduction a few years ago. Although it's not yet a true competitor to Microsoft Corporation's (NASDAQ: MSFT) Office juggernaut, it is making headway.

The "software as a service" camp is doing nothing but speeding up, as small and large businesses would like to offload expensive software installations and just use the Internet as a vehicle for getting things done across boundaries and time zones. Microsoft, though, is not capitulating just yet.

When the notorious Henry Bloggett proclaimed that GOOG was destined to reach $2,000 I do not think there was a dry eye in the house, either laughing at this ridiculous comment, which by the way offered no time frame or reference point, or crying for the shame of it all -- that was the kiss of death.

When I read about this I could not resist tempering the madness and posted Serious Money: Google (GOOG) $2,000? No way, it's too high now! The madness produced many interesting metrics to prove a point, including that you could have traded Google for both Berkshire Hathaway (NYSE: BRK.A) and Intuitive Surgical (NASDAQ: ISRG), two of my favorites, as an even swap (in capitalization only). That would be a heck of deal don't you think?!

The New York Post reports on Corporate Leader magazine's poll of the top CEOs based on a survey of analysts and investors. Here's my assessment of the top five:

• Steve Jobs, Apple Inc. (NASDAQ: AAPL). With its stock up 94.4% in the last year -- though 13% below its 52-week high -- Apple's new products this year have been outstanding. But it's a pretty pricey stock; it trades at a Price/Earnings to Growth (PEG) ratio of 1.56 on a P/E ratio of 42.3 and Earnings Per Share (EPS) growth of 27.2% to $6.26 in fiscal 2009.
• Eric Schmidt, Google Inc. (NASDAQ: GOOG). With its stock up 27.8% in the last year -- though 15% below its 52-week high -- Google continues to take share from traditional advertisers while struggling somewhat to profit from all its innovations. But it's a somewhat pricey stock; it trades at a PEG ratio of 1.39 on a P/E ratio of 49.6 and EPS growth of 35.8% to $18.19 in 2008.

What do you do when a stock that you own is falling on no news? That is the case for Google Inc. (NASDAQ: GOOG) shares which closed down today $31.90 bottoming out at $632.07. This is down from it's recent high of $747.24, losing $115.17 or about 20%.

When it was going up there was plenty of good news and hoopla to embellish stories of it reaching $2000, but on the way down there has actually been good news too. I could rationalize all kinds of intriguing stories as to why this has occurred but the most obvious is that it got too expensive and traders started thinking it was time to take some profits.

There are also plenty of investment fund managers wanting to record earnings this year that sold off some of their holdings to make their advertised returns look prettier -- window dressing they call it.

From my perspective Google is a $550 to $600 dollar stock giving it full credit for forward earnings of say $20 per share. Last month I questioned why investors would pay next years price this year . I guess Google's recent vertical leap could only sustain itself so long before other investors started asking the same question.

To find potential opportunities and verify my track record, read Chasing Value or Serious Money.

Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm.

During previous recent market downturns Google (NASDAQ: GOOG) has held up well. This past week the NASDAQ stocks have been retracing their steps, giving back a sizable portion of their recent gains. Google, though, has been giving back more than most over the past two days, slipping about 10% off its high.

There could be any number of reasons. Dubious earnings reports from other tech companies might be the culprit. Or it could be the news that AOL is buying Quigo, giving the appearance of some vulnerability. To me, that does not seem like it would be a major factor either. There is plenty of dour economic news at the moment, but that hits everyone. Google established a recent new all-time high of $747.24, but is trading around $671 now and has traded down as low as $663. (UPDATE: GOOG closed at $663.97 on Friday.)

Every indication is that Google is not that expensive compared to other rivals. Until I hear some negative news that is specific to Google, I think a large portion of this drop can simply be attributed to profit taking. There is plenty of juggling going on in the fund market this time of year. Have you been re-balancing your portfolio? Have you been taking profits? Is there some other reason for the sell-off? Where might Google land? Is this a buying opportunity, or if not, at what price do the Google bulls stop the slide? Some say short the stock, maybe, and maybe you get creamed -- that I would not do unless you have really deep pockets.

To find potential opportunities and verify my track record, read Chasing Value or Serious Money.

Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm.

Google Inc. (NYSE: GOOG) is recently trading down $20.58 to $699.78. Bear Stearns has a 2008 price target of $700 with an Outperform rating on GOOG. GOOG call option volume of 71,718 contracts compares to put volume of 35,680 contracts. GOOG November 700 straddle is priced at $39.40. GOOG December option implied volatility of 35 is above its 26-week average of 29 according to Track Data, suggesting larger risk.

Daily options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Just as gasoline prices promise to rise to record levels, Google Inc. (NASDAQ: GOOG) has found a new outlet for its Google Maps -- the gas pump. I think this is a splendid idea, particularly for drivers who need gas and directions, although there seems to me to be some danger that Google could tarnish its Do No Evil brand by associating itself so closely with the oil industry.

The Associated Press reports that 3,500 gas pumps, made by Gilbarco Veeder-Root, will include an internet connection and will display Google's mapping service in color on a small screen. Motorists will be able to scroll through several categories to find local landmarks, hotels, restaurants and hospitals selected by the gas station's owner. After the driver selects a destination, the pump will print out directions. Eventually, Gilbarco Veeder-Root hopes to enable motorists to type in a specific address and get directions.

Google will not put advertisements on the maps but the participating retailers will be able to make extra money from other merchants that offer coupons on the service. Google seems to think that giving away its maps at the gas pump will increase the number of people who use the service in places where it does advertise. I just wonder whether people will feel good about Google as they watch the price of filling up their tanks climb towards $100.

Peter Cohan is President of Peter S. Cohan & Associates. He also teaches management at Babson College and edits The Cohan Letter.

DealBook reports that Google Inc. (NASDAQ: GOOG) is shoving more chips to the middle of the table in its battle for a stake in Facebook.

Facebook's investors, which include Accel Partners and Greylock Partners, want a deal that values Facebook between $10 billion and $15 billion. That would mean that Microsoft Corp. (NASDAQ: MSFT) or Google would have to fork over $1.5 billion for a 5% to 10% stake.

Who will win this Facebook face-off? Google wants to raise the price so high that Microsoft will walk away. But Microsoft is said to be willing to pay any price to keep Facebook away from Google. We'll know who wins in 24 to 48 hours.

But we won't need to wait that long to find the real winner -- Facebook CEO Mark Zuckerberg and his investors are guaranteed to make big bank on this deal regardless of who wins the Google-Microsoft face-off.

Update: The New York Times reports that Microsoft won the Facebook face-off -- paying $240 million for a 1.6% stake -- valuing Facebook at $15 billion. That's 100 times its expected $150 million in 2007 revenue -- valuing $1 of Facebook's sales at 7.1 times more than a dollar of Google's -- whose Price/Sales (P/S) ratio is 14.1 -- and 17.5 times that of Microsoft's which sports a P/S ratio of 5.7. It looks like the old school Harvard ties paid off (that's where Gates, Ballmer, and Zuckerberg attended college).

Peter Cohan is President of Peter S. Cohan & Associates, a management consulting and venture capital firm. He also teaches management at Babson College and edits The Cohan Letter. He has no financial interest in Google or Microsoft.

Google Inc. (NASDAQ: GOOG) is expected to report 3Q EPS of $3.78 after the close according to Thomson First Call. GOOG is recently trading down $1.24 to $632.38. GOOG will host an analyst meeting on October 24. GOOG call option volume of 59,064 contracts compares to put volume of 38,118 contracts. GOOG October 630 straddle went out at $34.10. GOOG November option implied volatility of 39 is above its 26-week average of 28 according to Track Data, suggesting larger risk. October options expire on October 19.

Daily options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Peter Cohan, my colleague here at BloggingStocks, recently wrote about Henry Blodget's latest prediction: Google (NASDAQ: GOOG) is going to $2,000! Cohan summed up my reaction nicely: "Is this achievable? Who knows. But one thing's for sure, I am one sucker who took the bait to write about Blodget's call. So while the SEC has banned Blodget from providing investment advice, he remains as media savvy as ever."

After he agreed to a lifetime ban from the securities industry for his role in promoting internet companies (while trashing them in private emails), Blodget has managed to stay in the spotlight. He wrote a terrible book called The Wall Street Self-Defense Manual, which leads me to the thing I dislike most about Blodget. I would love for Mr. Blodget to be a great redemption story but the sad fact is, this man doesn't really seem to take responsibility for what he did. Consider this snippet from his book:

If missing the top had been my only mistake, I would have survived . . . I also made a more serious mistake, however, which was to write a lot of emotional unprofessional e-mails, especially during the heat of the crash. Later, amid the wreckage, when the press, public, and regulators began calling for blood, my emails did me in . . . I was accused by New York State Attorney General Elliot Spitzer of having made remarks in e-mails that were "inconsistent" with my research (popular translation: "privately trashing stocks he was public recommending"). Along with others, I agreed to pay a humongous fine and be barred from the industry. (Bold added by me)

Google (NASDAQ: GOOG) is expected to report EPS on 10/18. GOOG October at the money 570 straddle is priced at $35. GOOG October option implied volatility of 28 is near its 26-week average according to Track Data, suggesting non-directional risk.

Wyeth (NASDAQ: WYE) implied volatility Flat into $5 billion stock buyback. WYE, is engaged in the discovery, development, manufacture, distribution, and sales of products in pharmaceutical, healthcare and animal health. WYE announced a $5 billion share repurchase program. WYE has a market cap of $60 billion. WYE October option implied volatility of 27 is near its 26-week average of 25 according to Track Data, suggesting non-directional risk.

Daily options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

In a recent piece on C/NET, there's some chatter that the mortgage mess will ultimately lower online spending -- taking some of the wind out of biggies like Google Inc. (NASDAQ: GOOG) and Yahoo! Inc. (NASDAQ: YHOO).

Hey, just based on my own browsing, I'm not seeing many mortgage banners. So should we be worried?

I had a chance to interview Frank Addante, who is a veteran of the online advertising world. He sold one of his companies to DoubleClick and his latest gig is The Rubicon Project.