Posted February 17, 2009 10:13 am by with 26 comments

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If ever you need proof that Wall Street is nothing but a herd of sheep, take a look at Google’s PPS today.

That came after Google’s stock was downgraded at ThinkEquity.

So, you’re telling me that yesterday Google was a great company, with the strength to power through the recession, but not today?

Crazy, crazy!

  • Gugel

    It’s down 4%. Let’s not get ahead of ourselves.

  • @Gugel – true–and my tongue was somewhat in my cheek–but still, 4% drop is quite significant in just a few hours.

  • Such irrationality in this market. Google isn’t going anywhere.

    MikeTek’s last blog post..5 Bitter Pills: The Truth About Your Website

  • Remember, they’ve abandoned their Print and Radio advertising plays, and speculation is TV is next. They’re back to being in the Yellow Pages & Classifieds market rather than Advertising.

  • Andy, I love your book on reputation management and think you are a wise guy on so many other issues, please don’t be insulted when I say I would stick to them.

    This was an embarrassing article to come to on this site. Worse I read it because you wrote it and I wish I could have that time back.

  • @Roger – let me know your mailing address, I will send you a check for the 2 minutes it took to read it. The time it took to leave a comment, is on your own dime. 😉

    Seriously, don’t just fly-by with a comment like that. Be constructive and tell me why you thought I sucked.

  • Andy, I am in a rush and just wrote (but deleted) a comment I wouldn’t be proud to leave because of it. I am happy to respond later today, but would rather do so in private.

    Either DM me (@roger) your email or email me and I will bounce back with a more thoughtful response.

    PS. Good to see you are quick to respond in comments 😉

  • @Roger – no need. Just keep in mind that we report news with our own opinion inserted. You’re welcome to share your opinion too, but do that–don’t just drop a vague attack then leave.

  • The “herd instinct” is pretty commonplace actually. The stock market is a fantastic example, but so too are the millions of people signing up for Facebook or Twitter for the simple reason that “everyone else is doing it”. We mostly do things for emotional reasons and that’s why the stock brokers are doing what they are doing today with Google’s stock. It’s no real surprise – the real shock came at the very start of Google’s market trading; why on earth was the stock price raised so high? Aaah…emotion again…! No real thought or strategy at all…it was ever thus.

  • @Graham – true, and it seems like emotions are heavily influencing a lot of investment decisions these days.

  • Google isnt ban proof economy recession and never will it does.however,as google end user I just believe that google wont get down that easy.I believe change need times,and Google need time to reborn from the ash,more over I think now Google has role more then a search bar,google is also Traditions and since it is traditions I doubt speculations can put that down from the loyalty of a millions people who feel benefit from

  • Are you stocks expert or something so sharing those tips which can influence people lifes?

    Yeah… Best moment to sell is when it’s falling… What a stupiod thinking

    Vygantas’s last blog post..Windows vs. Linux (Firefox, Firefox Wine and Opera)

  • stupiod – bad*

    Vygantas’s last blog post..Windows vs. Linux (Firefox, Firefox Wine and Opera)

  • Dean

    These are short-term market gyrations…tomorrow it will be up 4%….keep your eye on the horizon.

    Besides, weren’t we just talking about Google hitting $2,000/share.

    Shows you how ridiculous the market and its prognosticators are.

    Still waiting to eat my shoe.

  • Jason

    How sensationalist! Did you even take into consideration that the entire stock market is down by the exact same amount?

    GOOG: -3.76%
    NASDAQ: -3.76%

    The drop in price has nothing to do with ThinkEquity’s downgrade, who is a no-name research firm. It’s just following the overall market trend today.

  • This means that is time to buy google’s stocks?

  • i’m guessing you bought a bunch @85/share too?

    paisley’s last blog post..Dell offers exclusive deals through Twitter, doubles follower count in less than 10 days

  • Some of you guys are taking this post just a little too seriously. If you want real financial analysis ask Jim Cramer. 😉

    If you trust me for your portfolio picks, then I have some great Enron shares I can recommend! 😉

  • Andy,

    I read through the comments here and wonder if everyone kicked their dogs on the way out of their homes today.

    In an attempt to stay on point, I marvel at the influence that these analysts wield even after many of their Wall Street ‘brothers’ have gone up in flames. These analysts who are often trying to create a name or reputation for themselves are still more powerful than we should let them be. I guess it’s the system though.

    Well, thanks for allowing me to waste your time with that comment 😉

    Frank Reed’s last blog post..Internet Statistics and the SMB: Believe At Your Own Risk

  • Yes 4%, of course the entire NASDAQ was down 4%. And Google was up from $282 to almost $380 in less than a month recently. The stock market is very volatile that is all any of this is telling you.

    John Hunter’s last blog post..$60 Million Bonus – For all Staff

  • These one-day jumps don’t really means as much as it used to mean. As other people have said, it is based on emotions and finicky consumer confidence.

    Shirley – Velvet Blues’s last blog post..Website Ownership: 4 Biggest Myths & Realities

  • Here you go, GOOG at 353.11 today.

    So you recommended people to sell yesterday, lets assume they did. What’s then? They rebought today and covered their loss.

    Do not advise if you are not stocks expert, thanks.

    Vygantas’s last blog post..IE 8 Incompatibility List: 2 400 Major Sites (and Counting)

  • @Vygantas – where did I advise people to sell? Did you even read the post? I made an observation on how quickly Wall Street can follow along with the herd, and I even implied that the fundamentals were still sound.

  • All the American market is down.
    So taking google value means nothing…

  • Title says: All Abandon the Sinking Google Ship!

    It sounds more like a command to me

    Vygantas’s last blog post..Weekly Browsers Recap, Feb 22nd

  • Anyway, if it’s not, then my fault :-

    Vygantas’s last blog post..Weekly Browsers Recap, Feb 22nd