Google stock closed below $500 per share for the first time since August 2007 today.
Google is exhibiting major heartburn over the proposed merger of Microsoft and Yahoo!.
Google owns the search market with close to 60% market share.
Yahoo! and Microsoft combined would have 35% market share in search providing a solid competitor to Google where no solid competitor exists today
Google stock looks like it has peaked and is ready to continue to move lower for the following reasons:
1. Technically the chart pattern in Google is weak with major support levels recently crossed.
2. With close to 60% market share in search, Google has reached its growth limits
3. Google has been on a hiring spree, hiring lots of new employees while the core talent exits the company, cashing out their stock options
4. Google is spending gobs of money on initiatives with little payback potential such as alternative energy and open wireless access that have little to do with their core software technology strengths.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment