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View Full Version : Google Stocks BIG Drop: $12B OVERNIGHT VALUE VANISH


RobertoOrtiz
02-01-2006, 07:19 PM
Quote:
"The meteoric rise in Google's stock ended Tuesday after the company's fourth-quarter earnings missed analysts' estimates, the first time the company hasn't pleasantly surprised investors since its August 2004 initial public offering. In opening trading, the company lost $12.5 billion in market capitalization. By midday, it had fallen $38.32, or 8.9 percent, to $394.34.
In midday trading, the Dow rose 45.63, or 0.42 percent, to 10,910.49. "

>>CHART<< (http://ichart.finance.yahoo.com/z?s=GOOG&t=5d&q=l&l=on&z=l&p=s)
>>LINK<< (http://www.breitbart.com/news/2006/02/01/D8FGFE6G1.html)

-R

Primo_itch
02-01-2006, 07:23 PM
Google is worth almost 400 billion dollars ? Oh ****! :o

kiaran
02-01-2006, 07:26 PM
Expect to see Google scrambling to regain some trust. They need to diversify their sources of income. At this point, I think almost all of their cash comes from advertising.

Maybe a new operating system? Google OS or maybe, G-OS.

Leonard
02-01-2006, 07:40 PM
IMO, Google's stock is overvalued anyway. They show all the signs of the dot bomb era.

Oh well, such is the stock market.

L.

Frank Lake
02-01-2006, 07:54 PM
This is very interesting.

Google stock drops like a rock within 2 weeks of telling the US gov. "No." for access to their search history's. That smells.

But I agree their stock has always been over-valued, much like MS's. I just wish I had Exon stock... record earns in the hundreds of billions!

geo5sf
02-01-2006, 08:01 PM
im still up about %100 on the stock... so a 10% drop isn't gonna phase me... There are lots of debates about whether or not it's overvalued.. I dont think it is, almost every business I know of gives Google money for ads, etc... it is by far the most viewed web site in the US.., potentially the world.,.. and the make impressive profits.

rblitz7
02-01-2006, 08:05 PM
Google stock drops like a rock within 2 weeks of telling the US gov. "No." for access to their search history's.
Yeah I heard about that but what exactly does that mean?

RobertoOrtiz
02-01-2006, 08:08 PM
It is like saying that the Google China mess had something to do with it.

Lets face it, Google needs to bring to the table something BIG pronto.
As has been stated before, they are making most of their money out of ad sales.

-R

Neil
02-01-2006, 10:25 PM
It is like saying that the Google China mess had something to do with it.

Lets face it, Google needs to bring to the table something BIG pronto.
As has been stated before, they are making most of their money out of ad sales.

-R

That's the problem, they have set these huge expectations. People expect something huge from them every other month or so. How long can that last?

flipnap
02-01-2006, 10:58 PM
a little look into google, and why its prolly the best place to work


http://www.wimp.com/googlejob/

eks
02-01-2006, 11:00 PM
Lets face it, Google needs to bring to the table something BIG pronto.
As has been stated before, they are making most of their money out of ad sales.

I think the way their advertising system works is already something really big. Well, maybe big is not the word, just intelligent. And an intelligent advertisement system is the Graal of capitalism. ;)


eks

leuey
02-01-2006, 11:04 PM
No...it's not really like that at all. Google isn't like a 'dot bomb', they just didn't meet (hugely overinflated) expectations. They still had something like 2 BILLION in revenue and a half a billion in profits. Some institional investors just dumped their stock, that's all. It's already climbing back up the day after. Their stock just needs a split so it doesn't seem so pricey. In 50 years ALL advertising will be targeted through the net and nobody is even close to Google. They make TONS of money, they're not like the stupid 'we just need an idea and some stupid VC's' dot coms that never made a dime. I'm not saying their Market Cap isn't overinflated - but they're a real company that makes real money (and a hell of a lot of it)

Look at AMD - they exceeded expectations the quarter before last and their stock plumeted - it's risen far past that now that they put another huge quarter together. Apple made a lot of money last quarter but didn't exceed expectations by as much as Wallstreet was wishing for and their stock dropped. None of these guys are like the dot bomb at all.

-Greg



IMO, Google's stock is overvalued anyway. They show all the signs of the dot bomb era.

Oh well, such is the stock market.

L.

geo5sf
02-01-2006, 11:58 PM
yea wall street alway's has these huge expectations that are never met.. when apple posts record profits, and their stock goes down, it's a bit odd... Google will be around for a long timne, how many years did it take Amazon to break even? Google is already making some huge profits...

UrbanFuturistic
02-02-2006, 12:14 AM
1st law of economics: that which goes up, must come down.

As for a desktop: see Goobuntu (http://www.theregister.co.uk/2006/01/31/google_goes_desktop_linux/)

RayenD
02-02-2006, 01:19 AM
Well, I still remeber all those dot.coms producing nothing, but selling their shares.
Google is a phenomena - it's a dot.com which for some unknown reasons exist in our times.
Still making and producing basically nothing of any real value, but selling shares.

I know, search engine, adds etc.. but it's all virtual illusion which does not add anything which would be worth their "value" based on shares. Shutting down google tomorrow would at most lead to some little confusion over internet for a week and nothing else. When people who earn their cash out of moving virtual money around share markets will get bored with google, google will disappear and will be only another example of fallen "virtual" company. Of course few people will remain very rich.

Well, I am probably old and would rather invest in pharmacy, food or Pixar and for me the whole "new economy" and all those vitrual companies is one of the biggest swindles of our times. :)

leuey
02-02-2006, 01:49 AM
I don't follow you....google provides a service (search, ads, etc) - not a product. Their service is worth something to a lot of somebodys (Billions...many billions of real $$$ - money paid for ads on google is just as green as ads on ABC. How do you think ABC makes money? How can you say Google's search engine produces nothing of any real value? that's retarded (no offense) - but it provides TONS of value to hundreds of millions of people dozens of times a day.

sheesh.

-Greg


Well, I still remeber all those dot.coms producing nothing, but selling their shares.
Google is a phenomena - it's a dot.com which for some unknown reasons exist in our times.
Still making and producing basically nothing of any real value, but selling shares.

mangolass
02-02-2006, 02:54 AM
Don't forget the big picture! Google's price remains sky-high, making people who invested over the past year or two very happy with its growth ~ and yet we keep getting these articles about the one-day drops, which are nothing surprising in a volatile, high-growth company.

Well, I am probably old and would rather invest in pharmacy, food or Pixar and for me the whole "new economy" and all those vitrual companies is one of the biggest swindles of our times. :)

The dot-com days of investing in companies without real earnings & real profitability are over ~ people are investing in google because it's one of the nation's leading software and media companies, and they like the way it has developed multiple revenue streams. I'm the first to admit that the stock is sky-high ~ it would have been smarter to buy while it was low (duh) ~ but even though the stock is expensive now, google is a unique and valuable company that's vastly ahead of the competition in a lot of ways.

LT

RayenD
02-05-2006, 06:25 PM
I don't follow you....google provides a service (search, ads, etc) - not a product. Their service is worth something to a lot of somebodys (Billions...many billions of real $$$ - money paid for ads on google is just as green as ads on ABC. How do you think ABC makes money? How can you say Google's search engine produces nothing of any real value? that's retarded (no offense) - but it provides TONS of value to hundreds of millions of people dozens of times a day.

sheesh.

-Greg
Well it's only a part of my retarded (no offence taken btw) opinion about our world and our times in general.

Companies like google could as well disappear and nothing would change for average human (not for some percentage of USA citizens who invest in stocks though). I think cg-talk disappearing would have bigger impact on civilization than google.

Google is a gadget, just like ipod and another thousand of other things which are absolutely not needed and not imporant to human beings in general, but are feed up to us as absolutely essential. I was using internet way before google appeared and besides tons of junk which has been added to internet since then, nothing changed. Google has tendecy to point people to the junk, just because junk dealers pay more.

Food, energy and pharmacy is important, if I personally can earn some cash on it, then I finance them. Personally I think such gadgets as google are waste of human energy in most cases. These are artifical instruments for people who make money by moving virtual money around, producing nothing valuable for average human on the planet (and I am not talking about average shareholder). If those people get bored with an instrument they move out, and none of us know when it will happen. But if someone wants to finance it, I don't mind.

Someone said that in 50 years 100% of ads will be on the internet. I for one believe that in 50 years there will be no adds and no internet as we know it. At least I hope so. That pretty much sums it up, and forgive me for being idealistic and anarchistic, I doubt I'll ever change :)
Oh I went off topic majorly.
PS. manoglass I see you being idealistic just like me, but in a bit other way ;)

kiaran
02-05-2006, 06:52 PM
RayenD - Your views are materialistic and out-dated. We are on the cusp of the information age. People have recognized that the true illusions are the tangibles (the very things you ascribe so much value). Everything is information and information is power. Companies like google know this, even if most of the users haven't recognized it yet.

The dot.com bust was a market phenomena that occurs at the starting point of every paradigm shift. It's only natural to view this as a sign of failure for the whole industry. But that's a very simplistic view (and quite inaccurate). Six years later the IT industry is alive and booming like mad, despite the rough start.

storyForge
02-05-2006, 07:03 PM
no offense rayen-d, but I think you need to shift your perspective a bit...

Google not having as important an effect if it dissappeared as cgs would? Perhaps in your personal world, I grant you that. IT would affect a huge number of artists worldwide, no doubt. but this is a small niche of people globally. Google is used worldwide, by billions of people. I think the loss of something like google would create a shift in the advertising market that would be unparalleled by few market changes that have ever occured. I'd try looking beyond an egocentric perspective.

and on the topic at hand...

I dont believe that google is worried about a 10% drop in stock due to investor speculation. They maintain a firm stance that they will not offer any midquarter information, aka guidance for investors, and thats a pretty bold stance. I'm sure they are in it for the money, but they have other goals, and catering to 'the man'(stock market) is not one of them (please dont qoute google.cn controversy over this, some information is better than none... msn, yahoo, etc get no bad rap for doing the same)

BRUTICUS
02-05-2006, 07:36 PM
Google needs to get some of these BETA programs OUT of beta. Google Talk is actually quite cool it just needs file transfer. GMail is pretty neat it allows you to send large files to yourself online.

GoogleEarth is not in Beta but its amazing...imagine when every company in every city of the world is paying google for real estate on Google earth? Paying to have a 3D model built of their company building and placing it on Google Earth....

Google is a respectable company for taking risks and I think they'll be bigger than Microsoft one day. They create timless content that grows exponentially. Microsoft creates software that gets dated.

RayenD
02-05-2006, 07:36 PM
Kiaran, I am probably one of the least materialistic people who I know ;). My whole rant wasn't about earning money.
Out-dated I agree. Basically I believe that people should pay more attention to being happy, friendly and helping each others than buying stocks of some silly search engine.

People slowly forget how to be happy without artificial aids and add to this a huge level of stress caused by civilization and work which on average do not provide enough resources to even own a shelter (house or place to live) without being a slave to some bank.. we might not have that information age coming. The opposite, I read more and more books and hear opinions by modern philosophers and humanists who think that our civilization is in danger, just because of things I very simplistic described above. Unhappy and stressed people at some point end in apathy. I am not smart enough to elaborate on it, and this isn't probably a place for it.

Information might be power, that's right, but average human being do not seek nor need any power. Average human needs food and shelter for the family and maybe some entertainment.

That's why I'd rather put my money into some company which produce food or at least provide quality entertainment. At least there is a chance it can serve someone outside of few big cities in developed countries and won't get wasted in some virtual company in virtual world, which is used mainly for stock exchange speculations.

All right, my stomach just gave me information that I need food :)

BRUTICUS
02-05-2006, 10:16 PM
Thats more evidence that Google will rise above against. Google knows what we want. Because everything we search for goes through their search engine. THey know the products we want to buy and use and they provide.

There will be more coming down the pipes. Mark my words.

BigErn
02-05-2006, 10:25 PM
Google is a respectable company for taking risks and I think they'll be bigger than Microsoft one day. They create timless content that grows exponentially. Microsoft creates software that gets dated.

The idea that Google will be bigger than MS creeps me out quite a lot. Wish they would just turn back on the good search engine, which actually found stuff, without just serving up corporate .COM`s.. but then that was always its goal, and why it became so big so quick. :rolleyes:

shogunmouse
02-05-2006, 10:47 PM
the success of google is just a freak of nature. there is no way they can stay at the top like that. with that much success, others are going after it. they just got lucky

mouse

shogunmouse
02-06-2006, 12:49 AM
test, 1, 2

leuey
02-06-2006, 01:14 AM
Sorry I said 'retarded' - very unprofessional of me. I don't think you quite understand the impact Google has had on the world. Businesses are getting more and more revenue as a direct result of Google Ads, Google also sells 'black box' systems to places like the IRS who need quick in-house searching and indexing capabilitiy. Google (and companies like it) in short, make the internet more usefull. As a research and sales tool google is way out in front and millions of people, businesses, educational and government institutions take advantage of what Google has to offer evey day. Honestly, I'm somewhat mystified by your comments. Google has arguably added more 'value' to the internet than any other company - researching issues, products, etc is easier b/c of Google. Getting customers and clients is easier b/c of Google. Finding your way from your house to your next business meeting is earier b/c of Google. And so and so forth. That's value - if CGTalk disappeared it would be replaced immediately by another message board. CGTalk doesn't have any proprieatry technology that coldn't be replaced in a day. If Google were to disappear tomorrow the internet as a whole would be a lot less usefull.

-Greg

edit - their stock has nowhere to go but down right now, but remember that it IPO'd at 80 or so - droping from 450 to 400 isn't going to kill them. They're very profitable and there's no indication that they won't continue to be so. Yahoo is doing well too, and MS will certainly try to reclaim what they've let slip away. Google didn't get 'lucky', they had the best algorithm. Google didn't advertise or market - they got big b/c people chose them b/c they offered the best solution (it was just a couple Stanford guys with some home built servers and a proprietary algorithm ya know). Before the IPO there was a thread here about how they wouldn't make any money, how it was stupid they were going public, how they were going out of business, etc. People need to pull their head out of the dot.com era - the internet has matured and become ingrained in the way we live.




Well it's only a part of my retarded (no offence taken btw) opinion about our world and our times in general.

Companies like google could as well disappear and nothing would change for average human (not for some percentage of USA citizens who invest in stocks though). I think cg-talk disappearing would have bigger impact on civilization than google.
;)

ShadowHunter
02-06-2006, 02:23 AM
The success of Google is largely due to its ingenious business model. Most people when asked how google is making money, have to stop and think about it. They sure as hell did not pay for any of their software. In fact, when you later reveal that the key word is advertising, most people are surprised to hear that google has ads.

Google is designed to be as transparent as possible to the users. It's primary goal is to connect demand and supply effectively. So what google does is provide a win-win service. The user wins because (s)he can find relevant pages within a fraction of a second, and the suppliers win because their target audience is able to find them.

Google has become so natural to our everyday lives. If you want to find some information you google for it (note the verb!). So natural that you don't even realize how big of a catastrohe it would be if this service was to suddenly disappear.

I don't know about you, but appart from the services essential for life (of course they take precedence above anything else, so why even mention or compare them), having the collective wisdom of the world at my finger tips is invaluable to me, and the millions of other users googeling every day.

superlayer
02-06-2006, 03:24 AM
Does anyone have any info or leads into googles money machine?
Their business model etc.
I would love to read in on it especially in book form.

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