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San Francisco (pte034/28.06.2005/13:54) - Google http://www.google.com , the fastest growing search engine, now boasts shares worth US$300.
At the close of trading on Monday, Google cumulative stock was worth about $84.47 billion, which makes it worth just under the combined stock value of eBay http://www.ebay.com (worth $45.37 billion), and Yahoo http://www.yahoo.com (worth $49.83 billion).
Most of Google's money has been made on advertising. Traders and experts are comparing Google and Time Warner, another company which has used advertising to make its fortune.
On Monday, Google's market capitalization had exceeded Time Warner's ($79.19 billion), though the search engine's first quarter revenue was eight times less than Time Warner's, whose profits were up comparatively by three times as much.
Like many others, David Edwards, a financial analyst with American Technology Research http://www.amtechresearch.com, is astounded by Google's market value growth. When Google was trading for $236 in May, Edwards advised his clients to buy Google stock.
Edwards believes in Google's long-term prospects, but is not sure what short-term advice he should give his clients.
"It seems like everyone has jumped on the price-raising bandwagon, which has left me sitting here and scratching my head," he said. The advisor is not sure whether to advise clients to buy the stock, nor does he think he can advise them to sell. "Let's just say if I was owning Google stock right now, I'd be selling some," he said.
And there are still some who believe that the Internet is going to make them a lot of money.
A book on Google, titled 'The Search' by John Battelle will be published in be published in September by Portfolio Hardcover. Battelle says it is only natural that people want to believe in Google. There were those who wanted to believe that the Internet could make them rich in 2000 and 2001. And that dream has all but died.
"If you really believe in something, you're looking for a place where you can prove you were right the first time," he said. "And Google is such a place."
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