GOOG Drops: A Reflection

Last night Google released their 4th quarter earnings in a carefully timed announcement after trading had closed for the evening. To make a long story short, Google’s earnings were not what Wall Street expected. Consequently, GOOG dropped 51.56 in after hours trading from $432.66 to $381.10.

The question now is: has Wall Street been jolted into reality and realised that Google is a one-trick-horse? While I can’t see Google’s stock continue to climb, I do think that the general opinion of the company is changing. In the words of one analyst, “Google had been priced for perfection. These results were not perfect”. And therein lies Google’s problem, they’ve been living the dream for too long and it was only a matter of time before reality bit.

This isn’t the end for Google, just the end of their lucky run on the street.