It’s not everyday we see a 10% intra-day drop in Google’s stock price but that’s what happened today when they missed analysts’ expectations. To make things worse there was a small hiccup during the earnings report process when a third party company accidentally released their profits early without permission, which caused all kinds of problems (゜o゜) Some investors are beginning to think that the company’s advertising business, which is by far how Google makes most of its money, will not continue to do so well in the future. Sentiment was so bad today that Google contacted the NASDAQ exchange and said “Stop this madness and halt all trading activity for GOOG!” (I paraphrase of course) Their stocks were literally out of commission for most of the afternoon today, which means nobody could buy or sell their shares.
After the initial shock has worn off the stock started to trade again in the afternoon. Is this a good time to pick up some Google shares, or wait awhile and see if it drops even more? I am tempted to buy some GOOG now. But I will be patient and do some research into their financials first. From an earnings perspective they are still more expensive than Apple stocks despite their $60 per share drop today.