GOOG at $398? Clearly, You're Dyslexic.

Published on September 29, 2008
by John Paczkowski

The financial turmoil beating the United States economy into submission has finally begun to beat Google (GOOG), the Great and Powerful, down as well. Which must come as something of a shock to CEO Eric Schmidt, who earlier this month claimed the financial meltdown was unlikely to affect Google. “My guess is the drama is in New York, not here,” he said at the company’s Zeitgeist conference. “It’s business as usual at Google. … This is the sixth or seventh cycle I’ve seen in Silicon Valley. I think we’re better positioned than ever. The company has a very large amount of cash in very, very boring and secure investments. That was the right decision then and especially the right decision now. As a company, we’re fine.”

Allow me to be the first to say: Bull Schmidt.

Google’s share price slipped deep into the mud in trading Monday falling below their 52-week low of $406.38 and then below $400 to $398.50. That’s a price not seen since September 2006, and it’s furlongs away from the company’s 52-week high of $747.24. If $398.50-a-share is “business as usual,” then Steve Ballmer is Sergey Brin’s father. Larry Page’s too.

Yeah, the drama is all in New York. … It’s probably just psychological thing, right?

One last point, here: Yahoo shares are also in the mud at $17.51, as are Apple’s which have fallen more than 17 percent to $105.24 as of this writing.

My guess is that the drama is in New York and not here. Pffft.


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