Tuesday, October 12, 2004
AmTech Downgrade Hurting Google Bad
Yesterday morning's downgrade of GOOG from "Hold" to "Sell" by AmTech is still hurting Google. Yesterday's announcement sent Google shares down 1.8% yesterday, and they've dropped another $1.26 in pre-market trading. AmTech's Mark Mahaney thinks Google's quarterly report, coming in nine days, will be below expectations, because of all the movement in the search industry (Snap, MyJeeves, others). Personally, I disagree, especially since those new engines and new features will take months to cut into Google's bottom line and actually affect earnings. I would adopt a "wait-and-see" approach until the earnings report arrives on the 21st. Yahoo's report is coming later today.