Subprime are you scared
- 5th Nov 2007
- Leave a Comment
If I was Google I would be scared, the Market in the us hasn’t opened yet, but I’m pretty sure that the news of Citigroup’s Chuck Prince isn’t going to go down well, in the last month we have seem Goog stock fly up to 700+ while this has been happening else where.
JPMorgan slipped 51 cents to $42.64 in Germany.
American Express, the third-largest U.S. credit-card network, decreased 64 cents to $57.78.
Bank of America Corp., the second-biggest U.S. bank, retreated 62 cents to $44.49.
Wells Fargo & Co., the second-largest U.S. mortgage lender, slid 40 cents to $31.91.
Sainsbury plunged by a record 17 percent to 459 pence after Delta (Two) Ltd., the investment fund backed by the Persian Gulf emirate, dropped its takeover offer for the company.
Tesco Plc, the biggest supermarket chain, fell 1.5 percent to 479.5 pence.
William Morrison Supermarkets Plc fell 3.2 percent to 283 pence
Barclays, which makes more than a third of pretax profit from securities trading, lost 3.5 percent to 518.5 pence as HSBC downgraded the shares to “underweight” from “neutral.”
HBOS, the U.K.’s No. 1 mortgage lender, slipped 18 percent to 810 pence. HSBC lowered its recommendation for the shares to “underweight” from “overweight.”
BHP, the world’s largest mining company, fell 2.7 percent to 1,707 pence.
Xstrata Plc, the world’s fourth-largest copper producer, retreated 2.6 percent to 3,222 pence.
Anglo American Plc, the world’s No. 2 mining company, sank 2.2 percent to 3,049 pence.
British Airways Plc fell 6.25 pence, or 1.5 percent, to 412. ABN Amro Holding NV lowered its recommendation for Europe’s third-largest airline to “sell” from “hold,” writing that the benefits from moving to a fifth terminal at London’s Heathrow airport will not offset competition.
ITV Plc added 1.9 pence, or 2 percent, to 98.1.
Ladbrokes Plc fell 8 pence, or 2 percent, to 393.5 pence.
William Hill Plc lost 12 pence, or 2 percent, to 589.5. Morgan Stanley downgraded adbrokes’s shares to “underweight” from “equal-weight” and lowered its recommendation for William Hill to “equal-weight” from “overweight.”
thanks to Saxobank for the above Data, Now I’m not a stock market guy, yes a have a few shares here and there, but if Goog starts to slip and the people I have spoken to think it will, are we going to see a run on the stock with panicking selling and if that happens what will that do our industry.
Dave
15 Comments | Leave a comment »
This looks more like you’re pushing the ‘paid links’ debate than you caring for the whole SEO community. :D
I pretty much asked the same question yesterday, although my thoughts on it were based more on gut feelings and logic, than actual numbers.
Great minds think a like I guess, it scares the hell out of me that a company can over trade so much
Roy, this is a More self preservation post, If Google goes pop today what would you do ?
Do you rank well everywhere,
Can you PPC well in Yahoo and MSN
Can Your Business survive without Google
DaveN
If Google’s stock price takes a tumble, I’d definitely look to buy at whatever the “floor” will be.
Agreed Todd, if they recovered from the fall that is :)
DaveN
Looks like Google is currently up to $723! This is just insane!
All good points - and it’s definitely worth thinking about (would it pop this frothy little bubble we seem to be having?).
Having said that, I think they have stacks of cash? I don’t see the business actually going pop, no matter what happens to the share price…
Could they become an acquisition target for someone with stacks of cash? That’d be interesting… (Think MSFT).
I do not think GOOG will dive, it will be pandemonium, and if it does I would not be a buyer…Black Monday!
“an acquisition target”? I was under the impression that Page and Brin kept more than 50% of the shares?
If the stock did crash, I doubt it would affect them much unless they we’re in hock for a lot with loans backed by shares. Even then ownership would just turn to the creditors. Then again google being run by a bank, with no stock options for the staff to keep them, there maybe cause for concern.
Stocks go up and down and we’ve seen a big fall over the past few weeks - FTSE 100 from around 6700 to 6400.
However, we really haven’t seen a big impact from the credit crunch yet - in fact, I’d say we’ve seen none at all, because the August losses were just traders going bearish on fears on what the credit crunch reality would be - and we haven’t seen that yet.
The funny thing about GOOG stock is that it’s looked overpriced since it went over $200, but the point about markets isn’t the hard practical realities, as much as herd mentality. If the herd see GOOG as the next GNER, they’ll keep their hand in for the long term, especially now it’s been tied up with S&P and god knows how many other funds.
2c. :)
What’s interesting is BHP. Makes something like 3 x profit than what Google does revenue. Since 99 we’ve had a massive resources boom and with India and China still doing around 8% - 10% annual growth the good times for resource companies look set to continue.
Yet BHP’s stock goes down and Google’s goes up.
Even if they do crash you can bet someone will be there to pickup the ball. Google won’t go away in a hurry. Corrections happen, its all part of the cycle. I’m more concerned about the general economy and what it effect it might have on advertising budgets and PPC spending, I expect that might just have an effect on things but who is to say how much. So much of the world is still not even awake to PPC…
What fascinates me is Google’s failure to diversify from their eggs-in-one-basket business model: ad revenue. If I (part-)owned a 10 year old ad business trading at $700+/share, I’d be thinking it might be a good time to start spreading the risk around…