Bad week at the Plex

7 comments

The denizens of the Plex have been through a really bad hair week. It has been fairly clear that Google was in for a bad time on the Nasdaq once the mainline and investor press picked up the bad PR that was seeping out across the blog world on Google. Everyone from Danny Sullivan to the Wall Street Journal, and Slashdot on Threadwatch to Business Week has been having a go at them over the past few days.

From the particular, the Toolbar fiaso, to the general, Yahoo and others may be poised to do better in the long term - they have been slated. They refuse to back down on the toolbar fiasco, and are getting bad mainstream press, the banning themselves for cloaking was just plain wierd, and the financial press are looking at their long term profitability

Follow the title link for the full post.

The "tipping point" may have come midday Tuesday this week. This graph shows Google dancing along happily at $189, by close of play on Friday it had fallen to $177. In round terms that is a 6% fall in the value of Google in three and a half days. If you are valued at $50 billion, 6% of that would buy an aweful lot of toolbars.

Basically Google cannot afford loss of share price at that level for long, investors start getting edgy. They either have to do something about it PDQ, or by default assume the role of the character in David Copperfield, Mr Micawber, who was always "hoping that something would turn up". Unless these guys have made so much on the IPO that they really don't care any more, I think we can expect at least a PR blitz over next week - or I guess heads will roll.

Comments

don't think anyone else has mentioned this

Yahoo are buying back common stock. Those graphs look interesting now....

Bad Monday at the Plex too

Basically Google have to start finding something positive to stay, look at the graphs above, and they have now fallen 8% in the last week. With Yahoo following them down, as investors are wary of the sector.

Odd thing investor uncertainly, once they get the shakes, a slide like this can continue until something happens to improve confidence.

Somebody has to start liking them!

Anyone here remember Foo's Dotcom Morgue?

Oh yes, great times.

Hey RC, we running out of body bags here.

I wonder if a dip at the end

I wonder if a dip at the end of the week, that is on Wed, Thursday, and Friday is normal for everything? I'll be interested to see next week as well.

>education

Nice! Keep it coming. I don't track 'the numbers' as I should, often depending on my deep cynicism and (small-time) boardroom knowledge to keep the trend lines in sync w/ reality.

(Anyone here remember Foo's Dotcom Morgue? Man, there were days we couldn't post 'em fast enough. ...Not that I'm saying G & Y are tanking, mind you, hhh!)

Its a fair point

I looked at that comparison before I did my blog, and didn't want to weigh the discussion down with trying to eliminate "sector" factors from "individual share" movements

[img]http://ichart.finance.yahoo.com/z?s=GOOG&t=5d&q=l&l=on&z=m&c=YHOO,%5EIXIC&a=v&p=s [/img]

Best I could do was to look at Nasdaq, conclude that Yahoo was only marginally down on Nasdaq, and that Google was significantly down on Nasdaq. Hence I did not burden TW readers with the extra info :-)

Hey, we do give each other a bit of education here, don't we?

Yahoo comparison

We've certainly had a lot to talk about with regards to Google over the past week and most of it far from good. But running a quick comparison with Yahoo paints an interesting picture: