# Google's Market Value $60 BILLION: Speculative Frenzy II or New Corporate Reality?

**URL:** <https://boards.straightdope.com/t/googles-market-value-60-billion-speculative-frenzy-ii-or-new-corporate-reality/301063>\
**Category:** In My Humble Opinion\
**Created:** [April 25, 2005, 8:14pm UTC](https://boards.straightdope.com/t/googles-market-value-60-billion-speculative-frenzy-ii-or-new-corporate-reality/301063 "2005-04-25T20:14:01Z")\
**Posts on this page:** 1\
**Page:** 1

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**Author:** ![JohnBckWLD](https://avatars.discourse-cdn.com/v4/letter/j/d6d6ee/32.png) [@JohnBckWLD](https://boards.straightdope.com/u/JohnBckWLD)\
**Post date:** [April 25, 2005, 8:14pm UTC](https://boards.straightdope.com/t/googles-market-value-60-billion-speculative-frenzy-ii-or-new-corporate-reality/301063/1 "2005-04-25T20:14:01Z")

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[From The Denver Post](http://www.denverpost.com/Stories/0,1413,36~32540~2834587,00.html)

[quote]  
…[ul][li]Profits up more than fivefold to $369.2 million for the quarter and sales nearly doubling to $1.26 billion - came from surging Internet advertising[_]The company’s (IPO) sold…at $85…(has) surg(ed) to $224[_]Google’s stock price pushed the company’s market value to **$60 billion** [_](A market value that exceeds) Viacom…Disney…General Motors, Ford (or) Hewlett-Packard[_]“Google shares are worth $275 to $290 each”, (says) Goldman Sachs analyst Anthony Noto[_]Net advertising “is probably about 3 or 4 percent of worldwide spending but growing very rapidly,” WPP Group chief executive Martin Sorrell said…[_]Google’s quarterly sales eclipsed the combined revenue of The New York Times, the third-largest U.S. newspaper company, and Dow Jones, publisher of The Wall Street Journal…[/ul][/li][/quote]  
Macro: Can this be a repeat of the 90’s tech boom?

Micro: Can a company with few (if any) hard/tangeble assets really have a comparable market value to a auto manufacturer or entertainment company? Especially in such a new market ('net advertizing).

Is there anything proprietary about Google’s service?

What is different about today’s Google and yesterday’s near-extinct ‘tech giants’?

Even with projected earning forcasts, Google’s price to earnings ratio is +/-42…at what point do analysts say that’s too high?

Are these pie in the sky forecasts nothing more than short-term, make it while it’s hot speculative guesses?