Google Stock is TANKING!

[Rob]

So Google has Android. Chrome. Tons of new services. Clearwire partnership. Doing the whole African Satellite for Broadband thing. TONS going on but yet their stock is TANKING.

What are your views on why? And should this be happening? Was GOOG overvalued to begin with and finally coming back to earth? Or is the stock a steal at this price?

Here is a quick article about how it reached a 52-week low today:
http://gear.ign.com/articles/909/909382p1.html

 

[Phases]

I suppose there are a lot of arguments as to why and where it will go from here. They dropped below their long term trend line in Feb for starters. Some will argue that right there could be the problem - once you drop below the trend line it takes an extra ummmph to get back over it.

One could argue the economy did it, most stocks ARE going down or hovering right now.

You could say it's just the nature of the beast, everyone has their ups and downs.

And of course, overvalued could be an explanation. But I don't think so, not as massive as they are.

It's right on the short term trend line right now. If I had the cash to blow, I'd buy now with a trigger to sell just below my purchase price. It may bounce off that and head back up. If not you'd lose minimal - with the right trigger. As it was going up I'd set a trailing stop to follow behind it to sell if it starts to head back down. $$

(Look at what it's done already since bouncing off the low)

 

[SHodges]

To put things into perspective...

Google is at $437.66/share
Yahoo is at $19.08/share
Apple is at $148.94/share
Microsoft is $27.62/share

Also, the entire economy is tanking, it's not really a Google-related issue, Google is just caught up in it. Several large financial institutions are going under, or on the verge of it. It's causing a lot of people to worry, causing a lot of stock sell off, causing a price drop off. It'll all balance itself out in time, and regardless, Google stock is still overwhelmingly valuable. They're an extremely profitable, well-run company that's about to get way, way more profitable in the next 2-3 years thanks to things like Chrome and Android.

 

[Phases]

It really is. Look at the headlines this morning about the "Global Market Meltdown" and the central banks around the world pumping cash into the market in an attempt to calm things down.

Quotes from various articles:

"There's a wholesale mistrust ... amongst everybody." "It is essential that the central banks do stand there and massage the trust back into action," Buik said. "Without them, we would be in unbelievably uncontrollable turmoil."

American financial investor Jim Rogers told CNN: "It's going to get worse. There are going to be more bankruptcies. There's going to be a big cleanout in the financial system."

"It's a complete collapse of confidence," Francis Lun, general manager of Fulbright Securities Ltd in Hong Kong, told The Associated Press. "The financial crisis in the U.S. is hitting everyone, everyone is running for cover. If the largest insurance company can fail, than no one is safe."

Fortunately there's this one:

"It looks like the panic-type selling spurred by the financial market turmoil is beginning to calm down," Shimizu said.

Things really are looking bad. So.. try not to look I guess.

I seem to have the "Eh, happens. Things'll work out" attitude about it. However - I work with a number of people who really are freaking out.

Wife and I have a reasonable amount of stock in AFL. A very strong company - it has withstood the market woes over the years with minimal or no concern for shareholders. If it drops a significant amount, then I'll worry.

 

[OrganizedFellow]

Right, the entire economy is falling.
I personally lose almost 30% in my 401k shares.

Worried? F-yeah! What can I do?

 

[p_quarles]

Google has been an amazing success story in terms of turning services into profit, no question. That said, any severe economic downtown is going to lead people to turn to the most easily quantifiable commodities. Advertising -- as large as it is -- is just not an industry that people are going to invest in big right now.

 

[gewgluvr]

Right, the entire economy is falling.
I personally lose almost 30% in my 401k shares.

Worried? F-yeah! What can I do?

You don't lose anything that you didn't have in the first place. Your 401k shares were only worth the paper they were printed on. You can easily put your 401k into muni and gov't bonds instead of stock programs .... but like most Americans .... you won't ... drawn to those huge returns like bugs to a purple light.

Rule of thumb ... if your investments are doubling in value in more than 7 years .... you are greedy. But then again ... most are.