Google Stock price - I don't get it

[Interlogic]

I've been watching the google stock price with interest recently and I am confused. The financial results look fine to me (great if anything) yet the price is plumeting?! 361.37 as I look at it now..

Can anyone explain that to me? (I don't actually have any stock, I've just been watching and trying to figure out how it all works)

[Edit]Make that 359.95 now.. -72.71![/Edit]

[mudanoman]

What the chuck happened today?! "Google 4th-Qtr. Profit Nearly Doubles to $372.2M but Misses Estimates; Shares Drop 13.7 Percent" . I personally have faith in it. I mean where would the internet be if Google were not here? Its also engaging in other revenue streams, so thats something to think about. We'll see....

[anthonycea]

It is the sell off that I expected after all the stupidity that Wall Street pushed on investors, it always happens this way man!

http://www.marketwatch.com/tools/quo...tw&dist=mktwqn

[Interlogic]

Oh btw, here are the Q4 financial results:
http://investor.google.com/releases/2005Q4.html

[ServerUnion]

Looking back on my finance classes many years ago, there is more to a market value of a stock price than the revenue the company brings it. There may be some upcoming trends of marketing indicators that are lowering it.

To name a few:
Exapansion into china
Growing diversification
Legal issues with the US government.
Debt levels
Growth projections

[qwestcommunications]

Perhaps, their guidance for the next quarter to a year has been reduced or even kept the same. The thing about Google is that all the analysts expect them to churn out market thumping results all the time and raise their estimates. I expect Google to come down to about $200 over the next few months, which will represent a fantastic buying opportunity becuase I expect this company to be valued at half a trillion within the next 10 years. To sum it, there is some downside risk in the short term but a great long term opportunity and one that should be in everyones portfolio. This is the company along with perhaps Microsoft (through acquistions of course) will define the internet age. Fill your boots when it falls.

[anthonycea]

It is called Wall Street firms getting out before the public, it is called the last guy out gets caught holding the hot potato!!!

It is large institutional investors (mutual funds) dumping the stock in the after hours session, you will see a major panic tomorrow when the market opens up!

[Interlogic]

Originally Posted by anthonycea

you will see a major panic tomorrow when the market opens up!

How do you mean (Looking to learn here )

[digitalpoint]

Might be time to buy some Google stock again, all things considered.

Hopefully it doesn't pull down the rest of the tech stocks tomorrow with it, although it probably will.

[Interlogic]

Originally Posted by digitalpoint

Might be time to buy some Google stock again, all things considered.

Hopefully it doesn't pull down the rest of the tech stocks tomorrow with it, although it probably will.

I have to say I am looking at the prices at the moment and really wishing I was liquid enough to get into the game..

[ServerUnion]

Originally Posted by Interlogic

How do you mean (Looking to learn here )

Means everyone that didn't sell is in time for market close is going to see that many dumped the stock and the price is falling. There may be more sales tomorrow.

This also may be an industry trend that we do not see yet opposed to just an issue with the value of G's stock

[qwestcommunications]

I think a better opportunity will present itself in the next few months so be patient.

[anthonycea]

Originally Posted by Interlogic

How do you mean (Looking to learn here )

When there is a major imbalance due to sell orders with no buyers in site the market could suspend trading on Google or lower the opening price where the bids are!

If the bids are at $150.00 that is where the stock could open!

It looks as if the stock is stabilizing now!

http://www.marketwatch.com/tools/quo...tw&dist=mktwqn

STORY

http://www.marketwatch.com/news/stor...7D&siteid=mktw

But you really don't know what will happen in the morning, it depends on the sell orders the market makers see in the morning as to what price they will open the stock up for trading!

[Interlogic]

Yeah, back up to 376 now but still surprisingly low. Will be interested to see what they are like in the morning!

[anthonycea]

Good bounce back, it may not be as bad as I thought......

[justinwp]

I still like the long term potential for Google. Just waiting for them to take that next step like they did from search to advertising.

[Sharpseo]

Originally Posted by digitalpoint

Might be time to buy some Google stock again, all things considered.

Damn, $455, nice timing. Just about nailed the top perfectly. I almost bought some put options yesterday, but I'm trying to just buy and hold stocks. Actively managing takes too much time, hehe. I think there's some sort of tax penalty if you buy back the same stock you have sold recently, so check into that if you do buy back.

Market expectations were just too high for Google. I'm still holding for the long term. Growth is still fantastic, and I'm not that worried about the legal battle with the DOJ from a financial perspective. I'm sure their legal team is happy to have a break from shutting down sites with Google in the URL.

[Brad Callen]

There was some news releases and what not about google and their recent fiasco with the book scanning in the libraries and legal action that was being taken.

That was right before the stock jump around, so it could have caused some upset in the market?

Who knows, it is the stock market after all

[internetguy]

Might be a good time to pick up some GOOG stock. This is what happens when you pump up Wall Street expectations. They want more and more and eventually you set yourself up for disappointment. No doubt that Google will continue to grow and be profitable. But maybe not as fast as people have come to expect.

[mcfox]

The thing that upset the market was Google getting taxed at 41.8% instead of 30%, as expected by the market. (CNN)

It's also difficult to assess the impact will be of Newspapers taking aim over copyright. (Reuters)

Thanks to Threadwatch