As I’ve said before, the Google guys have got to stop reading the press. First, the executive triumvirate at Google got the cover photo of Time magazine this week, with some glowing coverage inside. (The articles are available here at no charge after viewing an ad.)
Now, Barron’s has torched the company’s stock. In this piece penned by Jacqueline Doherty, Google is systematically dissected and ultimately defined as a vulnerable, over-hyped and over-valued company.
The piece starts out with a pessismistic assessment of Google, and it’s all downhill from there.
INVESTORS HAVE BEEN FIXATED on Google the past few weeks, as its shares have tumbled nearly 25% from a peak of $475 — and the fact is, there could be a lot more tumbling ahead. The share price could well be cut in half over the next year as the Internet giant grapples with growing competition from Microsoft and Yahoo!, increased pricing pressures in its online ad sales and mounting concern about what’s known as click fraud.
While this article is cited as the key factor driving Google’s stock down by nearly 5% today, in truth investors are operating off their own sensitive psychological swings and any bit of bad news is enough to push the pendulum deeper into the red territory.
Cynthia Brumfield at 11:32 PM|Comments(0)
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