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Market slashes Google's stock along with Yahoo!

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I'll never understand why the market takes the competition for a ride, so to speak. With Yahoo! proclaiming results yesterday after market close that it *only* made $164 million in profit on sales of $1.12 billion (a 28% gain), this just was not good enough for the market makers who tend to freak out at the slightest discrepancy (that doesn't fit the market's pre-conceived notions, yes?).

Along with the ride in pre-market trading this morning came Yahoo! competitor extraordinaire Google, whose shares slumped big time to $391.60, a drop of 2.8% or $11.45. Google, although similar to Yahoo! in many respects, IS NOT Yahoo!

All of us see this all the time, and for no good reason beyond the wandering mentality and loose connections often seen from the market. Google did not report results, didn't offer any new earth-shattering products and made no major news from the mainstream press. Yet, Yahoo! took it down with the ship for some reason because of what the market calls "lackluster" results. Ehh, give me a break.

Google may sure disappoint the market in its next quarter, or it may yet again blow away *projections* made by certain analysts. To drop GOOG shares almost 3% on a quarterly result of a competitor is, well, normal (unfortunately). Not that GOOG shares aren't overvalued anyway, as many people have said -- including me.

Perhaps that's why Yahoo!'s report was the motivator that started the shares sinking this morning and yesterday after the bell.

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Last updated: November 27, 2009: 03:05 AM

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