GOOG is in for a Downhill Ride

Jan 21, 2006

Like many people, since the day Google had it’s IPO I was wishing that I could have gotten in on that action. By the end of the month, when the stock continued to rise, I still sort of wished that I had bought some shortly after the IPO, but the thought of “man, $130 for a volatile internet stock? it can’t keep rising,” and yet, it has continued to rise steadily, until this week when rumors of Google being targeted by the DOJ surfaced and GOOG dropped 8% in just two days. The forever-climbing nature of Google’s stock has made it a seemingly viable short-term investment, despite it’s incredible price (nearly $480 at it’s peak last week). I think that this downturn will be the end, though, simply because it has had such massive gain over such a short period, it’s just too volatile.

Reuters Article