The Google Numbers

Are pretty amazing. If you are wondering why the stock is up $29 in after-hours trading, consider the following. Google (GOOG) grew revenue 14% sequentially from Q2 to Q3. During the same period, Yahoo (YHOO) grew sales 6%. So, right now GOOG is growing more than twice as fast as YHOO. And yet when you look at today’s closing prices, GOOG is 41x 2006 EPS with YHOO trading at 47x. Another point to think about is Google grew 14% sequentially in the 3rd quarter (which equates to 69% annualized), which is seasonally the weakest quarter of the year.

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