Google shares drop by 4.7 percent
Ever since the search engine, giant Google launched its IPO, it has seen a massive rise in the share market. However, it saw a minor dip on Tuesday as the share price dropped down by as much as 4.7%. This is their biggest decline in one day for the year. Market experts believe that the drop was due to the concern that the outlook for holiday sales may not be as strong as investors had hoped.
Market has doubts on this year’s holiday season sale especially after the Thanksgiving holiday. Google saw its share knocked down by $19.94 to $403.54 in brisk turnover of 21.4 million. Google makes most of their revenues from online contextually based advertisement. The company had earlier this year gained 40 percent in two months on expectations that a strong holiday season would lead a surge in revenue.
In fact, the company share’s turnover on Tuesday was nearly three times the 90-day daily average of 8.3 million. Many investors already believe that the share price of Google’s stock is already massively overpriced at more than USD 400. However, the company continues to be heavily valued if we take care the current share prices of the company.