Google Stock Drops 14.1% Exceeding Stop-loss Threshold
Shares of Google Inc. on Monday fell below $495 for the first time since August, days after a lackluster fourth-quarter earnings report and a $42 billion buyout offer from Microsoft Corp. for Google's largest rival, Yahoo Inc.
In afternoon trading, Google shares fell $21.30, or 4.1 percent, to $494.60. They have ranged from $437 to $747.24 over the past year.
Shares of Mountain View, Calif.-based Google have fallen 12 percent since Microsoft's $42 billion bid for Yahoo was announced Friday. Google reported its quarterly earnings after the market closed Thursday.
Stephen Houck, a former antitrust enforcer in New York state, predicted that Google could have a hard time raising antitrust concerns over the deal.
Additionally, on Sunday Goldman Sachs analyst James Covello removed Google from the "Goldman Sachs Technology Favorite Growth" list, citing a recent sell-off in the shares. He noted the stock has fallen 14.1 percent since it was added to the list on Jan. 18, exceeding a stop-loss threshold.
In a note to clients, Covello attributed the sell-off to concerns about Google's exposure to an economic downturn, particularly in light of the company's fourth-quarter results, which missed Covello's estimates and the Wall Street consensus.
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02-04-2008, 02:38 PM
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