So I see that the founders of Google are going to sell 5mil shares of google stock each. Now that can mean one of two things. They want to loose control of their company or they think the company is heading for serious troubles. In what I can only see as a possible Enron situation with a company that lets face it. Sells click advertising in a down market no matter how innovative you are companies are not spending money on advertising.
Google has spent money like it was growing on trees the past few years with one notable purchase of youtube.com for the paltry sum of 1.6 billion dollars. Which coming from the Internet industry I cannot see why that site demanded such a high price, they already had a pretty good thing going with video.google.com.
Regardless of their spending habits it is reminiscent of the dot bomb days where people were spending investment money like they had earned it drew huge salaries like the gravy train would never end. Now it appears that Google may be heading in the same direction as the other dot bombs.
Google has been quite recession proof at least it appears in their stock prices. But how do you really value a company which has virtually no assets. I mean were talking a little bit of real estate in California and a room full of servers. There really is nothing tangible to justify the billions of dollars worth of investment. This was very appear ant during the market crash of 2008 as google hit some lows just under 300.00 per share. Since that time it has recovered some but is now on a slippery slope once again.
After the announcement of the stock sale though the SEC last Friday the stock began to tank and at close of today Monday Jan 20, it had lost another 9 percent.
I dont think there will be much to keep this from falling through the floor. Maybe a government bailout after all google is too big to fail. what would we use as a search engine? Only time will tell and I could be wrong but I smell another stinker here.