Google announced earning yesterday after the market close. Fiscal fourth-quarter profit rose 17%, or $3.79 a share vs. $3.29 a share in the same period a year before. Although this is doing well by any measure, GOOG is at about $519 this morning and falling. Back at the beginning of November it was over $741.
This is A) why many people do not invest in stocks, and B) why so many people do invest in stocks. The market is only partially driven by the "real world", which is mostly the fictions of marketing anyway. The market is mostly driven by itself. Google has the sort of bright future that does not come along very often. It's shaking up it's industry, as it always has, and moving to shake up some new areas too. It'll work. The stock is a bargain, and given a year or two of time, buyers at this relatively level at going to do well.
Meanwhile Microsoft has made a very attractive offer for Yahoo!
People are saying this could spell a new challenge for Google. Er... How's that? Yahoo! has been in the business a long time, nothing new there. And Microsoft has a very long history of failed, too late, "me-too" internet ventures too numerous to mention. Not only that, but Microsoft has also nearly always brought this ruin down on the companies it acquires (and it always acquires, it's unable to create anything on its own).
Google should welcome this forthcoming irrelevance of Yahoo!