This is purely my opinion, but I can't understand why Google's stock is priced so high. In light of their recent behavior towards both the US and China regarding privacy and human rights, it's obvious that the main motivating emotion driving the company is greed. I think a lot of us had hoped that the "Don't be evil" tag line would finally be true for a large company. Unfortunately, it's just not true, and I think it may not even be possible for a large, publicly traded company. Had Google remained a private company, then the personality of the owners would be the driving force behind the businesses activities. Now it must be the never-ending quest for the quarterly earnings figure.
As far as the technologies go that Google is releasing, Adobe Flex/Flash is WAY ahead of the AJAX toolkit that Google has built. All you have to do is look at Breeze vs. GMail to get a good sense of the relative maturity of the two technologies. The Google/Sun announcement has turned out to be vapor to date. What was the point?
The real question for the long haul, is can Google deliver more advanced software and still survive on the unobtrusive advertising model? It's an interesting question. It would be interesting to see if they could deliver an enterprise class software solution for free based on advertising revenues generated by the product inside the enterprise. Could they move into the Salesforce.com space with an offering, or maybe a twist on a small business accounting application. It's hard to imagine such an application being successful when technically, clicking one of the ads means you are no longer working.
Another problem that has cropped up for Google that is probably much more important than most people are admitting and that is the problem of click fraud. Click fraud with Google is where a system is set up to simulate clicking on Google's delivered ads. It results in essentially stealing from Google's advertising customers by Google's affiliates. In a small way, if you click on a few ads on a blog or website you like solely for the purpose of delivering a few pennies to the site's owner, you are committing click fraud. Imagine the trouble you could cause if you set up a couple of cfhttp bots and hammer away a constant stream of your own spurious websites. The big problem here is that Google has enabled the entire system of fraud from end to end. I'm not sure they could ever completely stop it.
So with a known (severe?) flaw in their core business model, can somebody tell me why this stock is valued so high? Are we so desperate to find an honorable company that we ascribe that characteristic to the first company that gives us a marketing campaign claiming to be "not evil" when its actions belie that image?