Mountain View Internet company Google dropped 4 percent after a Barron’s article over the weekend said the Internet-search giant’s shares had an “exceedingly rich valuation.” Google shares closed at $484.75, down $20.25. They had climbed over $500 for the first time last week.
This kind of pull from Barron is not good for Google — duh, obviously. But I also agree that Google is far above what it should be. While yes, Google is an awesome company and they have a lot going for them right now, $500 a share is a bit excessive in comparison to related tech companies. YHOO, MSFT, and NWS.A all have lower than $30 per share.
Slowing U.S. economic growth and expectations that the next move by the Federal Reserve will be to cut interest rates are also weighing on the currency, said Marc Pado, market strategist at Cantor Fitzgerald.
The US dollar is also going to be seeing a huge hit soon with the Euro on the rise. Internet rates will be cut, stocks will fall. Will the USA see a depression in the near future? It’s very possible.
