Tuesday, January 31, 2006

Google misses Street targets, shares tumble

Yahoo! Finance (article)

Google shares fell 12 percent in after-hours trade to $379.00, slicing roughly $15.3 billion from a market capitalization that had stood around $126 billion. To put that in perspective, the decline represents the entire market value of Gannett Co. Inc., the largest U.S. newspaper chain.

That's no good, but not really unexpected. It seemed like Google was getting too big too quick. And you know what I think broke the camel's back? China. I think Google bowing to China meant it lost creditability with its shareholders. I wouldn't be surprised if Google gets down to $150, before it works it way back up to a stable $300 in 6 or so months.

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