Hi,
Firstly, I am a US stock market practicioner.
The reason why Google stock is so expensive can be summed up as
follows:
1. Google is seen as a promising tech company with the potential to
revolutionize the future. Internet search is only one of them. Now
google leads the search market, and the online advertising, but it
is moving into other areas such as integrating search in
multiple-media: radio/ TV/ computer/ etc, it wants us to use
computer or IT differently, a paradigm shift. It wants to produce
cheap $200 google desktop, not like the expensive computers from
IBM or Dell now. Basically google wants to bring a revolution.
Internet search is only the beginning, the stepping stone for
bigger things to come.
2. Google is filled with computer geniuses.
3. Google so far is a very healthy company with explosive growth in
its revenue. Great performace.
4. Technically speaking, Google commands a lot of eyeballs, which
resulted in it being a hot trading stock. A lot of hot money. Now
it has completely elevated itself from any 'traditional'
fundamental analysis into a hot stock.
However,
There are people who believe Google is a bubble waiting to
burst.
Nevertheless,
Google is still feeding the dream.
