Google’s (GOOG) 8% drop Friday wipes $15 billion off the search giant’s market capitalization and puts the stock back at levels last seen back in September. But that’s not the worst of it. Fortune’s Philip Elmer-DeWitt notes that Google stock has now dropped more than 230 points from its November high of $747 a share - wiping out more than $72 billion in market value. That’s more than half again as much as Microsoft (MSFT) is offering for Yahoo (YHOO), for instance.
On the other hand, even at Friday’s reduced levels Google stock has risen 506% since its initial public offering in August 2004. That, along with the company’s hammerlock on the fast-growing Internet ad market, is why even at a rich price-to-earnings ratio Google stock continues to be a favorite of tech investors - regardless of the unanswered question of how the company will perform in a sharp downturn. Unfortunately, judging by recent trends, investors may find out the answer soon enough.
No comments:
Post a Comment