"Shares of Google jumped above $400 a share to a record high Thursday, silencing skeptics thinking the soaring stock would hit a ceiling. Shares of the popular search engine gained $5.30 to $403.45, more than quadrupling since it went public 15 months ago," reports USA Today.
After the public share offering late last year, Google shares cost $85.
"But Google's valuation is more reasonable now than it was when it went public, [says Ken Smith, director of technology investing for Munder]. The company has a 48 price-earnings ratio based on expected 2006 earnings, cheaper than its 60 P-E when it went public, below Yahoo's 57 and on par with Amazon's 46, he says."
