Those predictions that Google’s stock would hit $600 aren’t looking quite so outlandish any more. Not after a blockbuster third quarter and optimism that buying video downloading site YouTube will help Google conquer a whole new area of Internet search. The stock price has surged 11% in the past five days alone, closing at $473.31 on Oct. 24.
Still, there’s reason to ask exactly what’s driving the stock and how much further it has to go. After all, Google, valued at about $145 billion, dominates a marketâ€”online advertisingâ€”that will generate only $16 billion this year.