Google, Inc. (NASDAQ: GOOG) has done it again. After passing the $600 mark earlier this year, the company's stock price jetted above the $700 level yesterday, closing at $707.00 on the spookiest day of the year, literally and figuratively. While I am a huge Google fan, are these levels justified? From a fundamentalist perspective, the share price is way out of whack. Some may even look back to the days of the dot-com madness of 2001 in looking over Google's current valuation.
Although, in just over a year, the company has added in more partnerships and has extended its hands deeply into so many pockets that its overall reliance on text-based advertising may wane slowly in 2008. This is by design: Google needs an Act II and the planning for that is well underway. Still, it's not there yet, although its share price reflects either some insane hype or unknown potential that traders are finding in that magic 8-ball.
Google's $200+ billion market cap has been raised 34% just since September, during which it reported another stellar quarter of results, which I liveblogged here. If you held Google shares at the start of 2007, have you cashed in with the 54% return you've seen this year?
If so, why? If not, why?
If Google turns into the advertising leader in the hot-to-trot social networking scene, it could be poised to hit even higher levels.
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