Net Hopes Hang on Google

And now, for a change, some good news about the Internet.

Or at least that's how the stock market is feeling as search giant Google (GOOG) gets ready to post its third-quarter earnings later Thursday.

After Yahoo! reported a weaker profit and shrinking revenue growth on Tuesday, and eBay chronicled its valiant but less-than-inspiring quarter on Wednesday, the anticipated strong showing by Google may be just the tonic that Internet investors need.

Analysts are expecting big numbers from Google -- like $2.42 a share in profit for the quarter, up massively from $1.36 a share in the year-ago period and above $2.22 a share in this year's second quarter.

Revenue is expected to reach $1.81 billion, according to analyst estimates.

For the full year, Google is expected to post earnings per share of $9.97, up from $5.91 a share last year. In 2007, Google's EPS is expected to reach $13.07. If those estimates hold true, Google's stock is trading at 71 times its 2005 earnings, 42 times its estimated 2006 earnings and 32 times its 2007 earnings.

But with earnings expected to grow 69% this year and 31% next year, several analysts have felt emboldened to put out a price target of $500, as absurd as that number seems on its face. But the Internet sector has been the refuge of choice for the past decade of the incorrigible dreamer. And if Google can't keep those dreams alive, who can?