Google shares in a serious dip

Posted on Sunday, January 22 2006 @ 20:26 CET by Thomas De Maesschalck
The price of Google's stock dropped below $400 for the first time in two months on Friday. The stock price went from $436.45 to $399.46 at close, a 8.5 percent drop.

There are two particular reasons for this. The refusal from Google to share search date with the U.S. government and investor worries about the search engine giant's upcoming Q4 2005 earnings report.
Google's market value has plummeted by 14 percent during the last week, wiping out $20 billion in shareholder wealth.

The selloff began Wednesday after Google's biggest rival, Yahoo Inc., released fourth-quarter earnings that fell below analysts' estimates.

Yahoo's shortfall raised concerns that Google's earnings report, due out Jan. 31, won't be as rosy as Wall Street anticipated earlier this month, when the company's shares surged as high as $475.11.
More info at Yahoo News.

About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.

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