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Google Stock Price Falls Big After Lockups Expire
By Jeremy Muncy
Staff Writer
Article Date: 2004-11-16
Google's stock, GOOG, has plummeted more than 6 percent as selling restrictions were lifted on 39 million shares held by early investors and employees.
Analysts had predicted the stock would fall somewhat today as selling restrictions were lifted, but most investors were more concerned with Google in the near future.
"It's really the underlying fundamentals of the company that are more important than the supply and demand characteristics of the stock," said David Garrity, an analyst at Caris & Co. "I think it's very encouraging that everyone has known that these IPO lockup expirations were coming, yet we've seen the stock trade up meaningfully going into today."
"Tuesday's lockup expiration was part of a larger schedule to lift selling restrictions. The expirations will make many more Google shares available for trade by February 2005" stated analyst, Robert Becker of Argus Research Corp.
"I look at the numbers and I say, `Jeez," commented Alex Motola, of Thornburg Investment Management. "They've got another 24 million shares coming off every 30 days. That's a lot of supply."
"They do have really good fundamentals,'' said Alan Loewenstein of American Fund Advisors. "As the stock comes down, analysts are going to say it's cheap.''
Shares of Google briefly topped $200 this month, after going public at $85 a share.
About the Author:
Jeremy Muncy is a staff writer for WebProNews.com
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