Will Google/AOL Deal Send Google Stock Over $500 a Share in 2006?

How big can Google get? More than one analyst predicts that the stock price will zoom past $475 next year. Will a deal with AOL propel it even higher? My bet is that it will easily top $550.

The Wall Street Journal is reporting that Google is in exclusive talks to create an advertising partnership with Time-Warner's AOL, shutting out Microsoft, who's been wooing AOL since January.

The deal could be finalized at Time-Warner's board meeting next Wednesday. The Journal states that AOL would sell advertising in the search results provided by Google and Google will promote AOL's web properties.

While some observers say that MSN advertising provides better conversion than Google, it doesn't have the reach of Google advertising.

Microsoft, as evidenced by its outdated, cumbersome Internet Explorer browser, just doesn't seem to "get" the online space, which Google practically owns in both search and advertising.

Full disclosure: I own three shares of Google. :>)