Google a $400 Gorilla!

Google has crossed another milestone, its share price is now past the magic (not to mention stratospheric) barrier of $400. Today's Wall Street Journal has this to say-

" Type in the world Mania in Google's search engine and you should see a link to Google Inc somewhere"

Google's stock price just knows no bounds. A year ago it debuted with a price tag of $85 and has jumped more than 4-folds miniting millionaires and billionaires along the way. With the crossing of $400 price tag, Google is one of the biggest companies on earth with a market cap a staggering $112 Billion for this internet upstart, more than Coca-Cola, Cisco and Time-Warner . Its P/E ratio of 89(!!!) makes it one of the most expensive companies to buy. Compare that with Yahoo's P/E of 38 and Microsoft's 23. Inspite of all this, there is no dearth of analysts who consider Google a buy even at this outer space price. Wonder what will happen if Google misses earning expectations of next quarter by a whisker or better still does not top earning expectations as much as expected or if Microsoft and Yahoo start making a dent in its core search business, the stock may come tumbling down a couple of hundred bucks.