Amid Yahoo Clamor, GOOG Falls

    February 1, 2008
    WebProNews Staff

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.

Amid Yahoo Clamor, GOOG Falls

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.