Feb 5, 2008

Google - Still Going Down ??

According to Google has now given back over $150+ per share and about $50 billion of market cap. Personally, I think the $700 mark was as good as it's going to get for Google. The mere fact that Yahoo is in play, changes the dynamic in the online landscape. Investors are worried because Google's revenue growth (paid clicks) decelerated sharply in Q4. The largest online advertising market in the world may be facing a Recession and it appears that Online advertising spend will slow, across board - in the weeks and months ahead.
Then, there's all that money - to be spent on "new opportunities", as the company searches for an alternative, sustainable revenue streams, such as the Android. At it's peak, Google hit over $700 and was trading at over 50x projected '08 earnings. I think it's likely to settle around the mid 400's and depending on the outlook for the MSFT - Yahoo deal, it could dip below $300 by Q4 '08.

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