There's a lot of discussion about Google's share price, since it's reminiscent of the Great Internet Bubble of the late 90s. Indeed, Henry Blodget -- a former Merrill Lynch analyst who was intimately involved with Bubble 1.0 -- has recently posted two stories about it on his blog. Thefirst, $500. $600. $2,000. Do I Hear $10,000? $0?, looks at how stocks are valued. The second puts The Bear Case: Google is wholly dependent on AdWords for meaningful revenue, so what happens if that goes sour? (If click-fraud bites, for example.)
The New York Times has had a look at "three companies with household names" that are all worth about $135 billion -- Google, IBM and Berkshire Hathaway -- and what investors get for their money. It also points out that Yahoo was worth $140 billion when its stock peaked in 2000, and although the company has done extremely well since then, it's lost two thirds of its value....
Of course, the fact that Google shares look overvalued at $400 doesn't mean they won't go to $600 or more.
