Google Stock Crash

Google stock crashed and burned last week. Interesting article at Internet Free Press about how they knew something fishy was happening with Google when they didn't get their usual paycheque for their Google Ad Sense ads on their site. Which is a better reason for Brad Spangler to drop Ad Sense off his website. See; Google Censorship China

Google is set for a fall because it is a dot.com remember them the artificial bubble that was the dot.com industry. Google produces nothing, it is a consumer product, for searching the internet, thus its ability to make money is its customer base, you and me.

Google stock set for fall-Hopes for the Internet giant are simply too high, Francois Pouliot writes

And the reason for Googles crash and burn, well like those other dot.com's it plays fast and loose with its financial reporting. And it is overpriced as Pouliot asserts.

Google's stock plunge rattles investors

FEB. 1 11:33 P.M. ET Google Inc.'s market value dropped by more than $9 billion Wednesday as investors bailed out of the Internet's leading search engine after an earnings letdown reminded them about the perils of owning stock in a company that refuses to provide financial guidance.

The Mountain View, Calif.-based company's stock price plunged by as much as 10 percent before rebounding slightly as Wall Street digested a series of analyst reports that continued to predict a bright future for Google. The shares closed on the Nasdaq Stock Market at $401.78, a decline of $30.88, or 7.1 percent.

The stock price is now 15 percent below its record high of $475.11 reached just three weeks ago but the shares remain a golden investment for those who bought at $85 in an August 2004 initial public offering.

And some folks got really worried, were shocked in fact at the crash. And then there were those who like the executives of Enron, knew what was going to happen and far from being shocked benefited from this insider knowledge. Google boss sold $45m stock ahead of shares dive And surprise folks thats perfectly legal for him to do to! The sales are part of a legal process that allows top executives in the US IT industry to reap rewards worth hundreds of millions of dollars a year without being seen to be awarding themselves salaries that would be thousands of times higher than those of most of their employees.

Oh I am shocked to learn that! Not. Despite the rantings of the Randites and other pro-capitalist liberaltarians, here is another example of surplus value, profit, not created by the capitalist being appropriated by them. Leaving crumbs for their workers, and shortfalls for their investors. So much for the joy of the market.

So now we have another explantion for why Google accepted the conditions placed on it by the Chinese government, no worse than those placed on it in the Middle East, in order to get access to that billion dollar consumer market. In order to bouy its overbloated share price.

GOOGLE (NasdaqNM:GOOG) Delayed quote data

After Hours (RT-ECN): 385.00 0.10 (0.03%)
Last Trade: 385.10 Trade Time: Feb 6 Change: 0.00 (0.00%) Prev Close: 385.10 Open: N/A Bid: N/A Ask: N/A 1y Target Est: 476.31		Day's Range: N/A - N/A 52wk Range: 172.57 - 475.11 Volume: 0 Avg Vol (3m): 11,813,400 Market Cap: 113.82B P/E (ttm): 76.70 EPS (ttm): 5.02 Div & Yield: N/A (N/A)

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