How can the price of Google's stock be so high when this company does NOT make the profits. Is this not just another bubble. How can google continue to provide stuff for free - not earn revenue's - and still have a high stock price
Google Stock Price?
That's the beautiful thing about the stock market, you can make money if you have a contrarian opinion. Feel free to sell some short or to buy puts.
Reply:How could I know? Report It
Reply:Google does make a profit and the stock price is high (based on P/E) because it dominates SEARCH on the internert and because of its prospects for future growth.
The stock price itself is not a measure of how expensive a stock is. Valuation ratios and other factors compared to its competitors and the overall stock market itself determines stock value.
Nonetheless, is it too high? Probably.
Reply:I thought that they earn revenue from advertising.
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