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Share price drop in this case is a function of missed expecation- its speculators getting it wrong, not a reflection of underlying weakness in Google.
If you read into the detail, it's the costs that are rising spectacularly. This is the thing that is making investors look again, especially when the results aren't mega spectacular.
If that was the avarage private business the owners would be delighted with the growth, but don't have 'fat and hungy' investors to answer to. The investors want mega spectacular, or the shares lose their shine.
Citigroup’s Mark Mahaney this morning cut his rating on shares of Google (GOOG) to Hold from Buy after the company slightly missed Q1 EPS estimates last night, as operating expense growth surged 45%, outpacing the 29% rise in net revenue.
It was reported that Larry Page sold off 55,556 shares. He must have seen the incoming revenue slip after Panda.
I've said it before, and I'll say it again: Google stock looks like a pyramid scheme to me.
The only way investors can make money out of the stock is by share price gains. The company does not pay any dividends.