Please note that his analysis is largely based on a regurgitation of the old internet stock valuation metric from 1999-2000 of "clicks and eyeballs." In no way is his valuation analysis based on anything concrete like earnings, cash flow, market size, etc. He does present a "forward earnings multiple," but he in no way attempts to provide a reasonable derivation of future earnings. What happened to things like: 1) are GOOG's accounting methods credible? 2) earnings quality/sustainability 3) competition (Microsoft etc)...I would have been flunked out of my introduction to finance class at University of Chicago if I presented a stock valuation analysis as retarded as the one Altucher lays out...
Having said all of that, I will say that IF the Fed/Government continues on its policy path of debt issuance and money supply inflation, then $1500 GOOG is entirely possible, even probable. Of course, if $1500 GOOG happens, expect that gold will be hovering around $5000 and silver around $200. Here's a 1-yr chart of from the Fed of the money stock, M2:
As you can see, the Fed has been very busy inflating the money supply. I'd love to see M3, the all-encompassing measurement of the money supply, but the Fed eliminated the reporting of M3 back in 2006 (Didn't Obama promise more Government transparency during his campaign?). Now, does anyone believe that the U.S. economic output has increased this year? Maybe a little? In reality, if the growth in money supply outpaces the marginal growth in a country's GDP, then inflation ensues. I truly believe that if a realistic GDP price deflator metric were applied to the Government's measurement of nominal GDP (i.e. nominal GDP less inflation, or real GDP), we would actually see a decline in GDP this year.
Please make no mistake about it, in the 5000 year history of organized civilization, whenever there has been this kind of currency debasement, rampant price inflation has ensued (and social unrest, wars, etc). So the good news is, if you own GOOG, you might easily see your stock rise to $1500/share. However, if you own gold and silver, you will see the value of your holdings outperform GOOG. Even better, if you own carefully selected mining stocks, you will see those investments dramatically outperform the price performance of gold and silver.