Google shares fall below US$500

By Elinor Mills, CNET News.com
Tuesday, February 05, 2008 08:59 AM

Maybe a roller-coaster ride is just the distraction Disneyland-bound Googlers need to get their minds off the company's falling share price.

Google's shares closed Monday at US$495.43, the first time they've closed below US$500 in about six and a half months. The dip follows news that Google's two main competitors could possibly merge. It also comes as employees take a company trip to the Southern California amusement park.

Google's shares had been sailing to what seemed like never-ending heights, hitting a record high of US$747 last November. However, they have lost 30 percent since trending downward late last year amid a larger market downturn, and have fallen by a third since their record high.

The recent shock to Google shares came on Thursday evening after the company announced fourth-quarter results that just missed Wall Street expectations. The shares got dinged again on Friday after Microsoft announced a US$44.6 billion offer to buy Yahoo.

This article was first published as a blog on CNET News.com.


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