Forum Moderators: goodroi
No one else is writing this piece, so it will have to be me. I should say upfront that I'm not predicting that this will happen (yet), and I'm certainly not making a recommendation. I'm just laying out a scenario that could kneecap Google and take its stock back to, say, $100 a share.
Source : [internetoutsider.com...]
Anyway I dont think it is going to happen, but its worthful to discuss in all angles and be prepared for the worst.
Google is not like all other companies. They are very very very stong in the search field and I dont think any one can topple them in near future eventhough some competitors are spending millions of dollars on it. I am sure that in Internet History they talk about the Pre-Google , Google and Post-Google era.
If you still have Google shares at that point, kick yourself for not selling them at $400+ when you had the chance. Or convinve yourself that the shares will go back up above $400 some day.
From a company's standpoint, the value of its stock is only an issue if it needs to issue new stock to raise cash, a position that Google probably won't be in any time soon. A low stock value could also possibly affect the rate it gets if it issues bonds to raise cash- again, propbably not a position Google will face any time soon.
Google hasn't stumbled yet, but if they do it would probably be a much more precipitous drop since they have a lot farther to fall. They will miss at some point, though it may be far in the future.
Looks like the aftershock hit GOOG [marketwatch.com] a little bit as well (off about 3%)
