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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Reader Comments (Page 1 of 1)
7-19-2006 @ 9:54AM
joe hanon said...
Brian, you make the most sense in your blog comments. Ride on!!!
7-19-2006 @ 9:55AM
joe hanon said...
You make most sense in your blogs, Brian. Ride on !!!
7-19-2006 @ 10:27AM
l muso said...
Good morning Mr Doomsday. I see your at it again with your negative comments about Goog. "Many people say Goog is overvalued" another creation of your mind? On this very page that you invent stats that do not exist it says out of 40 analysts that cover Goog only 2 have negative comments. In the past 90 days 4 have moved to buy or strong buy while the 2 negs have remained unchanged. So as it appears you frequently do, instead of backing up your biased opinions with facts and figures, you mislead people with inventions of your mind.
Similar to yesterdays comment that click fraud is a "Huge thorn" in Googs side. And the word Hugh is backed up with what? And you claim you are not short this stock?
So "in my opinion" you are not only a frustrated daddy talking to an auidence [sic] that does not exist you are a frustrated writer who does not do his due dillegence in terms of research.
7-19-2006 @ 11:10AM
Brian said...
Hi "muso",
I won't fan your flames any longer, but I do appreciate your comments, however misguided they are. Suffice it to say, I firmly believe Google is very overvalued, although I truly believe the company is a leader in the Internet community and has a solid -- if not possibly shaky -- revenue position. Relying on a single source of income is very shaky. Thanks for your comments, but you *have not* changed my mind in any form whatsoever.
And yes, I have performed extensive due diligence on Google, as have many others here on BloggingStocks.com. See the below link for more.
http://goog.bloggingstocks.com/2006/06/21/10-reasons-i-think-google-is-going-down/
Sheldon's post is fact -- so disagree with fact if you'd like. If so, your cred just became moot.
Thanks for your support :-)
7-19-2006 @ 11:49AM
Gordon said...
Google will show their dominance at Yahoo's expense.
7-19-2006 @ 1:06PM
Paul Champion said...
Hello there Tech fans. Its a great day for another grossly overvalued stock to get blown up and this time its the Big Daddy...GOOG. Since GOOG exceeded Little IBM in market cap a while ago its been on a straight path to greatness....not anymore. This was and is an accident, and a bad one, waiting to happen....GOOG will go lower...much lower.
As usual the hot shots who just kept pouring money into tech untouchables like Google are now scrambling for cover. If you put 10 grand into the NASDAQ 100 6 years ago you would have 4 grand today...point being that 2/3 of GNP was used-to-be technology....the key word is used-to-be. It aint anymore and hasn't been for a while. Technology has limits too at least the last time I checked. I mean how many networks, how much software, how many faster chips does mankind need. Microsoft's stock has been stuck in the mud for years now and there are reasons for that...a bunch of them. Bambi's mother said it best, THERE IS SOMETHING EVIL IN THE FOREST.
7-19-2006 @ 1:14PM
l muso said...
What a joke!! Sheldon's post is touting stocks he admits he owns, claiming they are worth more than Goog. They would laugh in his face on CNBC. I have to agree or my credentials are moot! So your saying anyone who disagrees with you is wrong. You are starting to sound immature. Are you a kid? By the way what are your credentials? They couldn't possibly be paying you for this could they?
7-19-2006 @ 1:22PM
Brian said...
Am I a kid -- thanks, I needed a laugh like that :-)
Nope, got going to fan the flames any longer. Peace to you as well as an up-market. Sayonara...for this post at least.
7-19-2006 @ 3:13PM
Alex said...
Google just made the screw-up to end all screw-ups, and I called it the middle of last week as the one to short.
They hiked the advertising rates 3000% for smaller companies - with no notice whatsoever. If it was with the intention of forcing these smaller companies into Google's new shopping cart system (which gives you a discount if you also advertise with them) it backfired.
Seriously, a huge amount of their previous ad money went to Microsoft Adcenter this week with Google Adwords advertisers fleeing in droves.
http://www.webmasterworld.com/google_adwords/
7-19-2006 @ 3:33PM
Sheldon said...
I'll fan the flames for you Brian. Praising a stock investment because a majority of analysts recommend it is a very expensive bad habit. I often mention stocks I own because I know a lot about them and BTW 'I Muso' please educate us by contradicting a few of the facts mentioned in my blog. The facts do not change whether I own a particular stock or not. You may not agree with all the facts but they certainly don't change. Google may be the greatest company in the world with the greatest products and future in the world but that does not mean that any price no matter how high is a reasonable price to pay.