Et tu, Google?

November 13, 2008

Lots of eyes will be on Google, after its shares yesterday dropped below $300 for the first time since late 2005. What will today bring? In early trade, it was down 3 percent, adding to the 6.5 percent drop yesterday.

At the moment, it seems like every analyst is putting out a negative note on Google. Already today, another analyst today cut its price target and lowered its earnings estimates for the Web search company.

“Lack of consumer confidence has affected the online traffic growth. Traffic should be growing around this season as consumers begin to look for gift ideas,” Jefferies and Co said in a note to clients.

(It’s worth pointing out that it kept a buy ratings on the stock, which is a good thing since it cut its price target from $551 to $420 — or more than $100 higher than Google is currently trading).

As Techrunch nicely sums it up, this is about a lot more than Google: “The scary thing is that we’re talking about Google, which has the ability to withstand just about anything the economy can throw at it right now. But that’s not the case for the rest of the Internet, even the public companies. Google is sneezing, but everyone else just got the flu.”

Keep an eye on:

  • Many Hollywood executives are maintaining their outlook for the maturing DVD category, saying U.S. sales will remain flat in the fourth quarter and eke out a slight uptick for 2008 (Reuters)
  • NBC has canceled its new spy thriller “My Own Worst Enemy,” a show it had promoted heavily during its Olympics telecasts in hopes that it would help revive the struggling network’s lineup (Reuters)
  • Verizon Wireless will sell the touch-screen BlackBerry Storm for $199.99, after a rebate — in line with pricing for its popular rival, Apple Inc’s iPhone (Reuters)

(Photo: Reuters)

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