JUST THE FACTS

So Jimmy has put a $600 price target on GOOG. There are approximately 300 Million shares outstanding, so he projects a market cap of 180 Billion.

The largest market cap companies (estimates) are the following:

XOM - 390B
GE 355 B
MSFT 280B
BAC 215B
PG 185B
JNJ 175B
AIG 165B
PFE 155B
MO 145B

I can remember the time when CSCO had the largest market cap and many other HOT tech companies had huge valuations(AMCC PMCS RHAT RBAK BRCM QCOM). I think Jim Cramer called them the redhots and they had to be owned. I don't think they were ever great investments at those levels as the tech industry does not provide a great barrier to entry. Anyone remember Sperry, Wang, Prime, Digital, Xerox, Cray and on and on and on. So GOOG at these levels looks very familiar, and what exactly is the barrier to enter the search engine market?There is always another guy/gal/group with a better mousetrap.

And as I look at the markets, the NAZ continues to struggle even in the face of the great GOOG numbers. It is presently down on the day as is the QQQQ. The SPY is up 35 cents and the market internals look good on the NYSE but are flat on the NAZ. The SMH is down 1.5% on the news of the C sell rating on DELL. So even with all the great earnings news the markets continue to make headway with the Volatility indexes at the oversold levels.