Amid Yahoo Clamor, GOOG Falls
People who bought Google stock at its peak $747.24 are likely pretty upset these days. Missing estimates is rough enough on a shareholder, and so is losing more than $200 per share (hey, it could be worse, you cold be a Lexmark shareholder). But in the wake of Microsoft’s bid for Yahoo, Google shares continue to drop.
All the buzz around Yahoo has pushed shares up nearly 50%, coming just a few dollars shy of Microsoft’s $31 per share offer. Before word got out this morning, Yahoo shareholders were still lamenting a near 52-week low at $19.18 (which, in my mind, immediately recalled the year of the Spanish flu pandemic, how unexpectedly apropos).
But what was a shot in the arm to Yahoo could also be a kick to Google’s shins. The stock had recovered some of the post-earnings-announcement losses as of the close of the market yesterday, pulling in $528.94 after a fall from $564. This morning, though, as the caviar dreams and champagne wishes circle Yahoo traders, Google traders are bickering over whether $514 per share is too much.
Of course, that could just mean it’s a great time to buy. Yesterday, it turns out, was a pretty good time to buy Yahoo, down in the dumps as it was. Just like right now is probably a good time to buy (not sell) a house as the feds lower interest rates and homeowners become desperate to sell. Buy low, sell high is guiding mantra right?
Anybody who bought Google at $747 is definitely learning that lesson the hard way. So is anybody who didn’t sell at that price.