Money Comes Back To Google
The downward trend for Google’s stock took a day off as traders pushed the price back above $500.
A rough year to date where Google witnessed its high-flying stock descend from the near-$700 heavens showed a little life yesterday. It could be a temporary blip as optimistic buyers grabbed shares in hopes of riding them back upwards.
That could be a challenge. The recent downward movement happened when Google’s financials were a little bit off of what Wall Street expected to see. Google shares some of the blame for the subsequent selloff, as the company does not provide financial guidance.
After hours trading gave back some of Google’s gains for the day. A market close of $506.80 dropped by a nickel in that late trading.
It could give back more when the markets open today. The Dow did an imitation of a cup being pushed off a table yesterday, when the index fell nearly 3 percent, taking Asian markets with it over fear of a US recession.
Recent financial dire straits could prove a make or break time for Google. If the economy slows down, that would impact the businesses purchasing paid search ads, the bread and butter of Google’s revenue.
The impact could hit in a couple of ways. Small to medium businesses may reduce their budgets and spend less on paid search. Or, they could decide to consolidate their budgets and move money from other campaigns to Google, rationalizing this as going with the strongest search engine in tough times.