Google Breaks $700 Again. $800 Next?

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Google (Nasdaq: GOOG  ) shares hit $700 at the end of 2007, just months after passing the $600 high-water mark. Since then, the stock has taken a five-year round trip to $292 -- and back. Big G reached that $700 benchmark again on Friday. The stock can get back to setting all-time highs now, after a five-year hiatus.

So, does this set Google up to break new highs on a regular basis, like a delayed version of Apple's (Nasdaq: AAPL  ) record-breaking long-term chart? Mr. Market gets the final say, but I think Google makes a solid case for further gains. Check out these fundamental trends:

GOOG Chart

GOOG data by YCharts

Over the past five years, the stock has moved sideways (by Sheikra-style roller coaster, but you know what I mean). At the same time, the P/E ratio dropped by half and Google now produces more than 5 times the free cash it did in 2007.

In other words, the financial fundamentals are in place to catapult Google higher. On top of that, Google never stopped thinking big. Microsoft (Nasdaq: MSFT  ) still can't touch Google's dominant share of the online search and advertising markets, no matter how hard Redmond put its back into the effort. Android smartphones crush all comers around the globe, and Google just started monetizing that success in a direct way with the Motorola Mobility buyout. Google Fiber is creating an all-around Internet and TV service provider in Kansas City (both Missouri and Kansas) and could very well roll out nationwide over the next few years.

And there's more. Far from a one-trick pony, this company has hooves in more pies than the average investor could imagine.

Apple and Google walked hand in hand down Wall Street until 2010, when Cupertino took off to triple in value while Google hardly moved at all:

GOOG Market Cap Chart

GOOG Market Cap data by YCharts

Is it Big G's turn to shoot up like a moonbound rocket? Share your thoughts in the comments below. Me, I have a bullish CAPScall and some real-world shares riding on seeing the answer become a solid "Yes, sir!"

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Fool contributor Anders Bylund owns shares of Google but holds no other position in any of the companies mentioned. Check out Anders' holdings and bio, or follow him on Twitter and Google+. The Motley Fool owns shares of Apple and Microsoft. Motley Fool newsletter services have recommended buying shares of Microsoft, Apple, and Google, creating a synthetic covered call position in Microsoft, and creating a bull call spread position in Apple. We Fools may not all hold the same opinion, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days. The Motley Fool has a disclosure policy.


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