Earlier this week I postulated Google (GOOG) would report Q2 EPS of $1.35. Sure enough, tonight the company reported $1.19 in EPS including $0.16 in options expensing, which took the number up to my target. The stock is tanking after-hours as investors are always looking for more than most growth companies can deliver. Shares are down 6 percent or $18 to $296 each.

It will be interesting to see what the always valuable (read with sarcasm) Wall Street analysts say in the morning, especially after Google management warned on the call that Q3 is a seasonally weaker quarter (which we all know already). I have little doubt we will continue to see immense selling tomorrow morning, but I would expect money managers who still like the story to bargain hunt under $300 and help the stock recover some lost ground by the afternoon.

I still believe the stock will ultimately trade to 50x EPS, or $350 a share, in the next 6-9 months and as a result would not recommend panic selling alongside everyone else right now with the stock sub-$300. Google still deserves at least the same multiple as Yahoo! (YHOO) and eBay (EBAY) if not more.