Is Google on the Ropes?
Google’s stock is in a tailspin. Since Friday, it’s down about 10 percent, around $522 per share as of this writing. That’s what happens when you miss projections, even though earnings are again on the rise. Earnings of $8.08 missed the mark by two cents and, as reported by Adweek, expenses went through the roof — to the tune of 34 percent. What is Google paying through the nose for? In large part, employees. Out of fear.
Apparently Google offered two employees a combined $150 million in stock grants to keep them from defecting to Twitter. It’s not the first time — Google previously offered another employee millions to not join Facebook’s staff. Then, Larry Page did Google no favors by basically ignoring Wall Street’s concerns and questions about the missed earnings and rising expenses.
If it seems like Google has been grasping at straws lately … it’s because they are. What stands out most is the $6 billion hastily thrown at Groupon, which was famously rebuffed. But there’s also Google’s several failed attempts at “going social” and a recent flurry of algorithm updates.
Of course, Google is not going anywhere, any time soon. But they do look unusually vulnerable.
[tags]Google, Stock Market, Business[/tags]