Among the more financially inclined google-ologists, the eternal question is: What the hell is Google spending all that cash on? It's known as the CAPEX problem. The Capital expenditures - where are they?
Henry Blodget has some data from the 10Q - apparently during the latest quarter it was about $112M on servers, $138M on buildings and land etc. It turns out not to look as bad as some had feared. I.e. It's possible that Google is spending reasonable gobs of money for a company their size.
So if Google's CAPEX is a reasonable number some things fall out:
And to those who malign H. Blodget based on his infamous past - you really should be thankful he's "covering" Google, cause he's doing a better job at it than anyone else.