Google Dips Below $500 for 1st Time

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Bad news for Google, the company's stock fell below $500 for the first time since August. According to the article, a lackluster fourth-quarter earnings report and a $42 billion buyout offer from Microsoft are being blamed.

In afternoon trading, Google shares fell $19.11, or 3.7 percent, to $496.79. They have ranged from $437 to $747.24 over the past year. Shares of Mountain View, Calif.-based Google have fallen 12 percent since Microsoft's $42 billion bid for Yahoo was announced Friday. Google reported its quarterly earnings after the market closed Thursday.
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Well I think a more lasting impact will be felt if this Yahoo/Microsoft deal actually happens. MS up Google down, at least in the short term.
 
Looks like Google is going apeshit now over this deal.
 
If their stock was close to affordable, I would totally be all over it right now. This is one of those, "You missed the gravy chain, but here's a second chance." moments.
 
MS stock went down when they announced their bid for Yahoo too. Yahoo may even try to re-open talks with Google to avoid being assimilated.

its not a simple thing, and Wall Street looks at many factors. ATM Google has deeper pockets than MS. but this is about more than a possible buy out of Yahoo.

In a note to clients, Covello attributed the sell-off to concerns about Google's exposure to an economic downturn, particularly in light of the company's fourth-quarter results, which missed Covello's estimates and the Wall Street consensus.
However, the analyst maintained a "Buy" rating, and called the stock's valuation compelling.
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I dont think Google has deeper pockets
Microsoft has way more to spend
 
The whole "worst January in NASDAQ and S&P 500 history" thing might also have something to do with it. :rolleyes:

We are seeing 3-5 year lows in so many stocks it is ridiculous.
 
Is it better than to invest in the (still) insanely expensive Google stock for ~$500, or the Yahoo stock for <$30 ?
 
xxGriff said:
MS stock went down when they announced their bid for Yahoo too. Yahoo may even try to re-open talks with Google to avoid being assimilated.

its not a simple thing, and Wall Street looks at many factors. ATM Google has deeper pockets than MS. but this is about more than a possible buy out of Yahoo.
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MS stock went down due to uncertainty. Almost any time there is an attempted buyout two things happen. The company doing the buying generally goes down in price due to uncertainty regarding the core business. Anytime there is fear or uncertainty about anything, the price goes down. The company that is being bought will adjust based on the announced price. In this case, while YHOO was trading at $19, MSFT said they would buy them for $31 a share. This drove the price on Wall Street to $28. It didn't go all the way up to $31 because hey, nobody knows for sure if this will happen, but on the other hand the possibility moved the price up there, over 50% in one day.

And Google does not have the reserve cash that Microsoft does, nowhere close. As a matter of fact, Microsoft has a bit over $20 billion in cash (Apple by comparison has $18 billion). That is why MSFT is making this hostile bid takeover in public. They have so much market capitalization in stock that they are counting on Yahoo shareholders to exchange their stock for Microsoft stock if the deal goes through. Considering that Yahoo announced a bad Q1 with a bad outlook, not just for Q2 for for ALL of 2008, hitting a four year low the day after earnings, and you can understand that many shareholders who are left holding the bag might want to get out of the stock with a much much better price than they would get otherwise. So Yahoo will get pressure from that end as well.
 
Serpico said:
So Yahoo will get pressure from that end as well.
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Meaning that Microsoft is counting on pressure from Yahoo shareholders to accept the takeover bid, that is why they set the price so high compared to where it was trading at.
 
my point exactly....MS stock went down and the whole market will continue to ride this roller coaster...."its the economy stupid". Google did not drop in price because MS bid for yahoo. it did not make the projected earnings, and has made investments and bought quite a bit. getting all that to work and increase profits is a large order to say the least.

in order for MS to "buy" Yahoo...they will have to take on debt. just because a company is valued at any given amount does not mean they can spend that much. The fact is the Stock Market is the biggest casino in the world, and although not probable, it is possible for any company to lose it all on factors that are used to gauge the worth of any commodity.

the online search market is pretty much a closed game at this point, as far as players. 500/share is absurd imo. splitting hairs about who has more money is moot. the reasons for the "dip" has nothing to do with MS or Yahoo. once you have 10+ billion in spendable cash...you are doing pretty damn well. Wall Street wants more...they always do.
 
I guess the fact that the rest of the Stock market has taken a huge dip for the worst isn't on anyones mind??

Google while maybe going down more than others due to recent events is following the same trend as the rest of the market, its nothing surprising
 
The best time to buy stock is in a bear market, like we have right now.

The only problem is this is the time most lemmings are selling due to fear. If you study the company you can figure out if they are being punished (stock price wise) due to fear rather than performance reasons.
 
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