Call It What You Will Google Down 55 Billion

FREE IFN Newsletter

Call It What You Will, Google Down $55 Billion

By: Nathan Weinberg
2008-03-06

Googles stock continued its epic slide in March, hitting its 52-week low for the first time in the history of the stock. GOOG currently stands...

...at $447.70, almost $300 off its November high, taking the company from the brink of a $200 billion market cap and stance as one of the largest and most valuable companies in the world, down to $140 billion and on shaky ground.

Now, you could look at it like Google is roughly at the same level it was a year ago, and theres nothing wrong with being flat for a year when youre shooting for the long run, but that would ignore the fact that investors have lost billions of dollars betting on Google. A lot of those investors wont trust Google next time, and some of them cant afford to trust Google in the future.

Googles growth has stalled, and Googles stock was always based on potential, not actual earnings. Googles price/earnings ratio is still over 33, which tells me that, compared against some other healthy companies in the industry, Googles stock could drop another 50% as it struggles to find stability. Could we see another $200 drop over the next year or two? What kind of a disaster would that be for Google recruiting and morale?

Comments

Tag: Google Stock

Add to

Del.icio.us |

Digg |

Reddit |

Furl

About the Author:
Nathan Weinberg writes the popular InsideGoogle blog, offering the latest news and insights about Google and search engines.

Visit the InsideGoogle blog.


Titan Quest Forum	Nintendo Wii	Graphics Forum
Halo 3 Forum	Mac Software