Remember Back in November of 2006 When I Told You I Was Scared of Google's Stock Price?

Thomas Hawk's Digital Connection: We'll Know the Web 2.0 Bubble Has Burst When Google's Stock Crashes

Back a little over a year ago on November 28th 2006 I told you that I was scared of Google's stock price. At the time the stock was trading at about 60x earnings and every bull on Wall Street was pumping the stock. The stock closed on November 28, 2006 at $489.50 a share.

"With Google's current P/E ratio sitting at about 60 times earnings it does make you wonder. Is Google's stock price already set for perfection? What if advertising revenues don't come in in line? What if there are cracks beneath the surface of Google that we don't know about?"

Google's stock price today? $460. About 6% lower than it was back about a year and a half ago.

The stock's down $26 a share today alone (about 5%) because apparently people aren't feeling as clicky as much these days as Google might have hoped. This according to the folks at Comscore.

Since November last year shares are off 38%.

The good news is that Google's stock now only trades at about 35 times earnings -- much cheaper than it's 60x earnings number a year and a half ago. Still, the rest of the S&P 500 trades at about 19 times earnings which is still a pretty big discount to where Google is trading at today. By way of comparison, Microsoft trades at a little over 15 times earnings. High flying Apple Computer trades at about 26x earnings.

Analysts of course are still very bullish on the stock. Credit Suisse analyst Heath P. Terry has a staggering $900 price target on the stock.

Personally Google's stock price still scares me. Not as much as it did a year and a half ago, but still some.