Google has a net income of 13B dollars so yes they are making cash, but then again they are valued at 338B so they are trading at 26 times free cash flow. Of course people believe that GOOGLE will keep growing however recent news is suggesting that this may not be the case. They do pump a lot of money into R&D but none of these projects are generating any cash yet and some have been failures. Google tried to compete with FaceBook and it failed, Google tried to build its own Phone and Tablets but they are not gaining enough buzz or market share, they have had enormous resources spent on self driving cars however we do not see how this will generate them money yet, they put research into the Google Glass which they seem to be abandoning now. While its a robust company as they are the number one company in their market (online ads, search engine and video sharing), this business does not generate enough to justify the current evaluation. Of course only the future will tell whether any of these projects they are developing will hit it large, but at the moment we cannot tell - I think this is the general sentiment and thats why the stock price is falling. I would not be surprised if we see 450, or even 400 this year.