Google has not hit my price target of $450… YET, but it has cleared the invisible line of $500 per share today by a nice margin. My guess is that various funds are being forced to sell positions right now and the stock is hitting short targets, so I would expect it to drop further today. It will likely rebound with opportunistic buyers, but, if it stays below $500 for a couple of days, we are on the $450 downhill slide.
Why do I care? Google at $450, in my opinion, will start a broader market decline starting in technology and advertising, and this will be bad for everyone.
Google has invested in China,and firewalled or not that will pay off in this comming Olymic year. Violent market changes at Yahoo! will cause more broad declines.
By the next New Year (Julian, or Chinese), this bump will not be noticeable.
Either way Bio-Tech is doing better this decade than the IT ‘bubble’ of the 1990′s, just as Green Tech will baloon in the coming ‘Teens’, and aerospace will follow that in the 2020′s…
I know you have some diversity on both fronts (X-Prize foundation comes to mind), so to keep a positive face on the future, focus on short-term potential for BT or Green IPO’s for right now, and don’t cry over the temporary ‘spilt milk’ at Google this fiscal quarter.
No matter how much virtual ‘milk’ is spilled, there are new cash cows just over the horizon, just waiting for the right shepherd to come along.