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Google will have to execute flawlessly in the next five years after its IPO to justify these prices. I don't see it happening, there is too much competition in this market with Yahoo, Microsoft and even Amazon fighting it out. Is there really that much potential growth in the search market to justify a P/E of 110?
I know yahoo has a similar P/E but the 120 vs 28 price entry points per share is a big deal. This will likely be a volatile stock with both put and call buyers taking large positions.
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