Comments
If I owned Google stock, I'd be freaking out...
Written By Tyme on Jan. 23, 2008.
7 Comments
Report Note
+ Clip This
The downturn for tech stocks hit Google. The stock dropped to $584 yesterday to $548 today. It peaked at $747 last year...
With stock like Google (abnormally high) when do you sell (I mean, the stock opened at $60, that's one hell of a profit for those that got in early)? Do you hold on to it hoping it will get back to $747+ or do you think, "Let's not be greedy, sell now and be thankful for being a millionaire..."?
I think I'd have to sell some because I think it would haunt me forever if the price never went back up, but I wouldn't feel "bad" if I didn't hold on to it because I would have made a lot of money off of it.
Either that or as I get older I shy away from risk...LMAO.
Gnorb
Written Jan. 24, 2008 / Report /
There are 2 factors which will impact the stock price: 1) how people feel about the market, and 2) how they feel about the strength of the company. In many ways, I think this drop has more to do with the first than with the second, with expectation being that they'll be hit. (BTW, AAPL went through the same thing today, despite the fact that their market presence has grown.)
I think it's a mentality thing. Will Google rise again? Don't know. $700+ seems a little high to me for them, but tech companies are as weird as the market.
Of course, didn't the DJIA gain about 300 today?
Abi
Written Jan. 24, 2008 / Report /
Tyme, everyone should be more risk averse at they age. There's a reason why 2045 Retirement funds are more geared toward the volatile stock market than 2010 funds.
Vanguard's 2045 fund holdings are about 90% stock and 10% bonds
The 2005 fund is 45% stock and 55% bonds
That's quite a difference for folks who are young and folks at retirement. I just have to tell myself "Breathe deep Abi, this is a good time to max out your Roth IRA"
affisch
Written Jan. 24, 2008 / Report /
Tyme, I think people should avoid investment decisions in such an emotional period, except if they really need to cash in. I've bought GOOG at $ 465 with a target price of $ 650. I did not sell at $ 747 because the dollar was extremely low. I do not blame myself anyway, that's a long term investment for me, so I do not really care so much at the moment... I would bet it will approach $ 900 in the next 2/3 years. Hopefully it won't come back at $ 465...
Ozone42
Written Jan. 24, 2008 / Report /
I really think the only times you should ever worry about a stock are if 1) you think the company is going down hill with no hope of recovery in sight, or 2) You need to get the money out quickly for some reason.
Otherwise you need to step back and look at things at the year (or larger) scope.
seopher
Written Jan. 24, 2008 / Report /
I wouldn't worry, Google owns the world. The company isn't going anywhere and it's just a brief drop, the sensible thing to do is buy Google stock.
Adamfortuna
Written Jan. 25, 2008 / Report /
Seems like the problem is that everyone flocked to the tech stocks as a safe haven which artificially inflated the price. As it is though, Google is still way overpriced compared to Apple (44p/e vs 29). If I had Google stock now though, I'd probably start to think about selling any of my highest-priced positions if the current market bounce slows down.
Joe
Written Feb. 1, 2008 / Report /
Tyme, I think the Google stock roller coaster will probably get even worse now that Microsoft announced a new bid to buy Yahoo.
To add to Ozone42's comments, if you need the cash for short term expenses (car, house, college, etc.) that are coming in the next several years, that money probably shouldn't be in the stock market. Having a longer term investment horizon lets you ride out crazy volatility in the market with minimal stress.