Google at $300? Hold That Cringe: "Despite the promising developments, the stock still comes with plenty of risk. For starters, Google is a one-dimensional business, with nearly 98% of revenues coming from simple text-based ads that mostly adorn search-results pages. Yahoo, by contrast, boasts sizable search- and display-ad businesses, not to mention myriad subscription services, from online personals to fantasy sports.
If the search market slows unexpectedly, Google will struggle mightily. In addition, it still offers zero financial guidance. This may have contributed to the pleasant quarterly surprises. But such guesswork always has a downside. Says ThinkEquity's Tinker: 'It's getting harder for Google now, as people are beginning to believe.'
And $300 is still a very big number to believe in. "