The sell off of Google continues it seems. Barron has put out an article that is speculation but if correct could see Google drop in share value by 50%. It seems the market is reacting to that news as Google has lost a further 5.39% at this moment with a share costing $343.08 when on January 11th a share traded for $475.11. Since that highwater mark, the stock has lost 24% of its value.
There are analysts who are still saying Google is a good buy and even still say $500 a share is possible. CitiGroup is saying $490 is possible. I think these are analysts who are trying to prop Google up just to keep their track record good along with their salaries. Look at the share prices for Yahoo! are $32.02[lets remember it seems Yahoo! sold out a dissdent to the PRC] and Microsoft shares are $26.57. I am an amatuer but when one compares Google share prices to their competitors, it seems Google is grossly over-valued. Also consider Microsoft is far more diversified in its market penetration that Google is so it can better survive a downturn in online advertising than Google, though Google is trying to branch out but its practices in regards to books may violate copyright laws and its video distribution network has left many unimpressed.
So I am going to side with the pessimists when it comes to Google, expect its value to continue a decline as the speculators are shaken out of the equation. Will Google drop to $180 a share or a mere $100 a share, time will tell. But the Google bubble is well and truly popped I think.