Blog Post

Googling The Street: What Goes Up Etc.

: Just in time for Barron’s week-long open house (surely a coincidence) — a cover story about Google’s falling stock price. Before the article’s publication, Google was down nearly 25 percent from its $475 peak; following the article, the stock dropped another 4 percent. This despite making the cover of Time in the interim. (Top Googlers played Lego for Time but no one was available for a Barron’s interview.) Following Google’s stock price is a popular activity for the haves, the have-nots and those who see a company trading at multiples of 41x revenue as a gauge of the market’s rationale. Lots of market nitty gritty and financial insights … in some respects, it’s like reading the “worst case” scenarios in a Google filing but with details.

Insider selling: “Co-founders Brin and Page have each sold more than $1.5 billion of stock. CEO Eric Schmidt sold $493 million. Omid Kordestani, senior vice president of global sales and business development, sold $793 million, and Ram Shriram, a director, pocketed $442 million, according to Thomson Financial.” Most of the selling follows programs established at the time of the IPO, as barron’s notes, the execs still have considerable holdings.

Insider buying: “Still, it’s notable that none have purchased shares in the wake of the recent stock pullback. Investors might be wise to follow what they do and not what they say.”

Favorite quote: Leo Hindery, former CEO of AT&T Broadband and TCI and current managing partner of InterMedia Partner: “People who own proprietary content will do anything they can to prevent search engines from becoming the gate keepers to their content. No one is going to let Google become the next Comcast.”

React: Google shares fall on fears stock may be overpriced