Google Stock Split in 2006

Some people are making what seems like outrageous predictions that Google stock will hit $2,000 in the next couple of years. At that level they would be the highest valued public company in the world.

Google is trading at around $450 per share today. The P/E ratio is at about 100 and their market cap is $133 billion. That's pretty incredible for a company that has less than 10,000 employees and no widgets for sale.

But personally I would never short this stock and I think it could well quadruple in the next couple of years given their growing domination of the world's media industry.

One prediction I could comfortably make for 2006 is that Google shares will split. And it's unlikely they will split two for one. I think we will see at least a 5 for one split.

Once the stock split is announced, we'll probably see a huge appreciation in the price and together with astounding quarterly reports, that $2,000 prediction (pre-split price) may just be reached before the year is out.