Google Nears Yahoo

October 22, 2004

With help from its earning's announcement last night, Google seems poised to overtake Yahoo's market cap in short order. The gap is hairline thin as I write this.

It's hard to imagine that a company of such humble beginnings could surpass Yahoo! in such a short time. But then again that statement alone is astonishing in its own right. It wasn't long ago that Yahoo! itself was considered a speculative company with a sky-high stock price. Now it's almost looked at as an established and viable denizen of the corporate world.

And yet we wonder if Google's lofty valuation is justified. Who knows? If you consider that its market cap is almost triple that of Amazon.com, that question may have some merit. But then again Amazon.com's market cap rivals that of Raytheon, a large defense contractor with 78,000 employees.