Shares are gitting hit after comscore report 7 to 12 % drop Will it turn even worse in Feb? Feedback appreciated! Google being hammered by economy
Consumer confidence is a very important index as consumer form 70% of the GDP. Definitely it will have a drastic effect on the economy. Google is hammered very badly, the last price I saw was 451.50. Just recently it was about 520, the drop was far more drastic than the indexes overall. I guess this is the result of the bad news from the consumer side as well as the comscore report
Google stock prices are waaaaaaay overvalued. Just look at the P/E and compare it to other businesses ... in ANY sector! Recession or not, Google can not be expected to grow fast enough to meet the hype that has already been priced into the stock. IMO anyway. I don't own any Google shares nor do I have any shorted.
No wonder they have been tightening up on Adsense and conditions as given in another thread. But I guess the myth that Google is recession proof is over.
Google is still plenty profitable, the problem is just that the investors pumped the price up to a level that would force them to double their revenue every year. Now that the price is crashing back to reality, Google might not have to squeeze so hard to meet the lowered expectations.
The after hours trading price is 463.00, the ending price yesterday was 464.19, it was really quite a big drop considering that the overall market raise about 1% yesterday.