Google Stock Drops $50 as Wall Street Swoons
Less than two weeks ago, Google CEO Eric Schmidt told reporters that Google was hardly feeling Wall Street's financial crisis.
"My guess is the drama is in New York, not here. It's business as usual at Google," Schmidt said.
Google's search, ads and apps machine may be turning a robust dollar, but the search company's stock took a beating this afternoon, dropping $50 at market close to $381, or percent 11.6, from Friday's close of $431. This is lower than Google has traded in two years.
The markets took a beating Monday, but if Wall Street was looking for a salve from the House of Representatives, it didn't get one.
The House rejected a $700 billion rescue of the financial industry by a vote of 228 to 205, according to the New York Times. This caused the Dow Jones industrials to plummet nearly 800 points, or almost 7 percent.
How things change and the mighty fall. Google's stock may have soared to $750 in fall of 2007, but now you can expect the financial doomsayers to downgrade their estimates of Google estimates.
No word yet how the financial crisis is impacting ad sales, but I expect Google, Yahoo, Microsoft and others to report lower than expected sales estimates in their next quarters.
How soon will Google start to feel the pinch from the Big Apple's declining ad dollar out there on the Left Coast in Mountain View?