That only recently changed. Pretty sure Google had a lower market cap for many years, like 2008-2011, when the stock price was around $500. (If someone can figure out how to graph the market caps that would be nice)
The market is evaluating future potential. When Google's stock price was around $500, the P/E was pretty darn low, so people didn't think Google had much future potential.
Now due to some forays into new businesses like cell phones and hardware, and PR about stuff like Glass and self-driving cars, the market thinks Google has potential again.
Likewise Apple's P/E dropped below 10 last year, so the market obviously thought they had very little growth potential.
The market is evaluating future potential. When Google's stock price was around $500, the P/E was pretty darn low, so people didn't think Google had much future potential.
Now due to some forays into new businesses like cell phones and hardware, and PR about stuff like Glass and self-driving cars, the market thinks Google has potential again.
Likewise Apple's P/E dropped below 10 last year, so the market obviously thought they had very little growth potential.