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February 4, 2008 2:07 PM PST

Google shares fall below $500

by Elinor Mills
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Maybe a roller-coaster ride is just the distraction Disneyland-bound Googlers need to get their minds off the company's falling share price.

Google's shares closed Monday at $495.43, the first time they've closed below $500 in about six and a half months. The dip follows news that Google's two main competitors could possibly merge. It also comes as employees take a company trip to the Southern California amusement park.

Google's shares had been sailing to what seemed like never-ending heights, hitting a record high of $747 last November. However, they have lost 30 percent since trending downward late last year amid a larger market downturn, and have fallen by a third since their record high.

The recent shock to Google shares came on Thursday evening after the company announced fourth-quarter results that just missed Wall Street expectations. The shares got dinged again on Friday after Microsoft announced a $44.6 billion offer to buy Yahoo.

Elinor Mills covers Internet security and privacy. She joined CNET News in 2005 after working as a foreign correspondent for Reuters in Portugal and writing for The Industry Standard, the IDG News Service, and the Associated Press. E-mail Elinor.
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Looks like the end of the road for Google
by TomboSlicko February 4, 2008 3:17 PM PST
Google will not be able to search a large majority of websites due to control from Microsoft and Yahoo. What good is a search engine if it is blocked at the front door of the site. Microsoft has this one figured out quite well. Microsoft always finds a way to come out on top. Google should have bought more than just youtube for content.
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Don't count
by Lee in San Diego February 4, 2008 3:36 PM PST
Don't count monopolies before they are hatched. This hostile
takeover by MicroSoft is not a forgone conclusion.
THE END??? You are joking
by ALPICH February 4, 2008 3:40 PM PST
Sure Microsoft would try something like that but it would be
pounced on so fast that even Microsoft's head would be
spinning. It would be so bad that anyone aligning themselves
with a proprietary search engine would be cut off. I think what is
more likely is that Microsoft will create revenue partners and
within that some sort of AJAX or Visual Studio extensions that
when placed into a page give more features to a search result.
Something that Google is not capable of doing at the moment.
This would serve the purpose of being able to provide a better
search experience through Microsoft while not stopping Google
from listing sites in their search engine. If Google will suffer
from this I am sure that it is years away from doing so.
yeah right
by leok February 4, 2008 9:19 PM PST
:P why would I be interested in yahoo content anyway? There ain't much USEFUL stuff there! Have you ever compared msn and google searches side by side? There's plenty of life in the Google's beasty yet...
All good things come to an end...
by MMC Racing February 4, 2008 3:26 PM PST
Companies can't beat estimates every quarter and sometimes market conditions mean you miss estimates. Google was priced pretty agressively by the street and this was a natural correction.
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Wow, down almost $250 in a couple months
by wango2007 February 4, 2008 3:35 PM PST
Losing nearly 1/3 of the value of the company in such a short time demonstrates there is little confidence in Google.

Is Google going to be the new Alta Vista? It has happened before and it could happen again.
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That's alot, true, but not horrible
by krosavcheg February 4, 2008 9:06 PM PST
I think the stock was simply priced way too high. Even after the major story of M&Y Google has not dropped that much. The price now is more realistic, and still strong.
Downward trend will continue
by motorush February 4, 2008 4:26 PM PST
This is the problem when you base your entire business model on "not-so-solid ground". It has amazed me over the years how can any company get away with:

1-Revenue from Sponsored links when ?% of the Visitors do not know those are paid links. I've seen reports of up to 27%.

2-ClickFraud (?%)...

Google is by all means a pioneer in highly relevant search but if any brick + mortar would have made billions in large part because of #1 & #2, they would have been long gone with litigation.

It is up to GOOG to come up with second trick in a hurry before Visitors & Googlers bail.
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Paid Clicks are Declining YOY
by motorush February 26, 2008 8:28 AM PST
Most likely, the 27% who didn't know they were clicking on advertisement is shrinking. This was never a genious model, it's an advanced form of consumer deception.
New ClickFraud Numbers
by motorush February 26, 2008 9:38 AM PST
Last month, Click Forensics said that the overall industry average click fraud rate reached 16.6% in the fourth quarter of 2007, up from 14.2% during the fourth quarter of 2006.
Microsoft falls to $30
by drhowarddrfine February 4, 2008 7:52 PM PST
The other half of the story. Microsoft has fallen 20% in four months to $30 from $38. Bigger story. The whole market has been falling for that long.
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