Google Trading at All-Time High

After the market closed yesterday Google announced spectacular third quarter results which greatly exceeded analyst estimates.  Click here for Google's press release and here for a Bloomberg article.  Google's stock hit a high of $338.38 per share in after hours trading, a 12% increase from yesterday's closing price and almost a 400% increase from its IPO price.  The reason the market was taken by surprise is that unlike many public companies, Google does not provide earnings guidance (periodic management comments concerning what they expect for future earnings).  Also, according to Bloomberg, three months ago Google's CEO described the third quarter as a slower period.  Not providing earnings guidance is Google's prerogative and has become much more common following the enactment of Regulation FD, but it contributes to volatility in Google stock.  I'm sure investors don't mind when the stock rockets up, but inevitably Google will one day fall short of estimates, and its stock will rocket down.  [Bill Sjostrom]

Update:  Google opened at $345.00 on Nasdaq this morning.  It's market capitalization temporarily topped $100 billion.  To put the number in context, Exxon currently has the largest market cap at $370 billion follwed by GE at $364 billion and Microsoft at $264 billion.  Click here for a list of the top 20.  Remember when Cisco was number one on this list and your investment portfolio was worth a lot more?  Those were the days.