Google - i want to buy, but can market cap go higher???

[PokerPaul]

I want to take the cheaper price i am geting after the selloff last week, like at 100 shares i am saving over $10000 than i would have paid last week, when i almost bought anyways.

But at a market cap of 200 billion, can one realistically expect it to double or triple over the next 2-3 years. 500-600 billion dollar market cap seems awefully high. It would move way ahead of microsoft, cisco etc.

And its main rival, yahoo, has cap of only a tiny fraction of google.

Can they really move ahead of all those established bellweathers. It just seems soo unreal that it could be worth more than those other companies.

Then again, those others arent putting out $12.51 earnings per share

[maxtower]

Obviously no one knows what google will do, but I think you answered your own question. $200 billion is a lot for a company that sells advertising. You can add up the total advertising sales revenues from the top 10 offline media companies. This is money that could potentially move online. Maybe 10% (a guess) of this money will move from TV and print to google. Apply GOOGs margins to this amount. What market cap does that justify?

[hawk59]

the biggest companies at any one time almost always have lower than market returns. when you start to work out the numbers for a company like GOOG or anything else with a huge market cap you get to figuring that they will eventually have to be the most profitable company in the history of the world to make it significantly undervalued currently. also, GOOG seems to me to be at more risk than most, the faster you build up your dominant position the faster you can lose it. that's how it works in rapidly changing industries, i don't think anyone can predict what things will look like in 10 years.

[Orlando Salazar]

I can't think of any fundamental investment analysis will show google being worth more than $450/share. However, given the small float and name brand, the stock could go higher. This is not an invesment, but if you wanna speculate/gamble, I'd guess it hits 800 before it drops.