SAN FRANCISCO/NEW YORK: Memo to Google: Welcome to life as an everyday Internet stock.Shares of Google Inc. fell nearly 5 percent on Monday and have lost a quarter of their value this month as the Web search company that once could do no wrong faces up to the realities of a business that must face the bad with the good.
But despite several bouts of negative news that have knocked a stock once thought headed to $500 back below $350, the vast majority of Wall Street analysts remain sanguine over Google’s prospects and advise investors to buy the stock.
The latest drop follows a report in Barron’s, the financial weekly, that speculated the Web search company’s stock could drop 50 percent under a scenario in which it would fall well short of bullish analysts’ 2006 revenue estimates.
