You have to laugh when Henry Blodget is given a national forum (Fortune Magazine) to pontificate about Google's valuation. This is the guy who touted dot-com stocks in public but trashed them behind close doors (and in e-mail). For some reason, Blodget riffs on why investors should ignore the "hysteria" surrounding comparisons between Google with Time-Warner. I've got no clue why Time-Warner comes into play but he makes a good point about Google's need to diversify. As much analysts are going ga-ga over the stock amid $300+ target prices, Google is a one-trick pony - albeit a fantasically lucrative pony. At some point, the search market's growth will slow and/or competition from Microsoft, Yahoo and AOL will become more intense. This means the growth valuation Google currently enjoys will start to fade. So what does Google do strategically to find another high-growth engine. Personally, I say take a run at Skype with an impossible-to-ignore offer that Niklas Zennstrom, et al have to no choice but to accept. As much as VOIP could be a huge business, its popularity as a GoogleTalk product will help drive more consumers to the core paid-search service. As for Blodget, he should focus on whatever he's doing other than talking to the masses about dot-com stocks.