goodroi - 2:07 pm on Oct 10, 2007 (gmt 0)

Let's think about this. $600 a share and a market cap of almost $200 billion sounds crazy. But Google is very profitable. They have a commanding market share on internet searches and show no signs of weakening. They just started their biggest quarter which includes the holiday shopping season.

Historically the Google spam team has made significant changes to their algorithm right before the holiday shopping season. Which innocently enough forces people with websites that the new algorithms dislike to significantly increase their adwords spend or miss out on the holiday sales (which for many retailers is not an option).

Recently Google has increased its saber rattling against websites that advertise online with paid text links. If Google were to implement a "quality update" in the next few weeks it should significantly improve the their "stock price quality".

Is their stock price crazy? IMHO yes, but I expect it to get even higher.