Meanwhile, Google's stock price surged to a high of $309 before easing off to close at $302. The company's market capitalization is now $83.9 billion, making it the most valuable media company around, despite its denials that it is a media company. With a market capitalization of $76 billion, it beats Yahoo, at $50 billion, and Time Warner, which includes AOL, at $79.5 billion. It has been a meteoric rise for the company, whose stock was $85 when it went public 10 months ago. The news prompted The Motley Fool Web site to suggest Google consider a stock split. However, the article says that move isn't likely--"it's not as if the company has ever been in a hurry to drive its stock down to more conventional tech stock pricing."
Google's windfall is bringing back memories of the heady days of the dot-com boom. The difference is that companies now have proven business models and online advertising is booming. And Google is in a sweet spot as the No. 1 search site at a time when people are more and more reliant on the Web to find everything from where to buy the cheapest camera phone to where to find the nearest cab.