Do you really believe that a company that makes the majority of its income from advertising will hold its value through one of the worst recessions were facing in a long time?

There's going to be some major spending cutbacks across the board over the next couple years because there HAS to be (from people to business to government), and advertising/marketing is going to be at the top of the list. There is a fundamental shift in the economy right now - credit is drying up and people are going into conserve and save mode.

There's no way in hell Google will have a $15 EPS two years from now, you can put this post in your calendar for October 2010. So yes, when Google's EPS is something like $1.50, it will make a ton of sense when they're trading at $40-50. Unless they've got some mysterious source of income, advertising is going to suffer horribly in this recession and so will the companies that depend on it.