Google (GOOG): The Downhill Streak Continues and the Domaining Lesson Learned

Google’s stock continues on a steady downfall in a consistent pattern. About one year ago, on December 10 of 2007, Google was trading at $718.42. Since then, it’s trading price has steadily dropped all the way down to $257.44 as of today. So Google’s stock has worked its way down about $450 per share in only one year in a very steady fashion.

One of the main reasons I would say Google’s stock continues to go down is because of the economy. A part of Google’s main stream of revenue is internet advertisers. That’s where for the most part, Google makes there money within their search engine. And because internet advertisers are being hurt from the economy, there Google advertising budgets have gone down causing Google’s revenues to go down. The economy and Google’s advertising revenues have a cause and effect relationship.

Google I would say at this point is a steal. Yes, it may go down some more, but that’s something you must deal with when buying a stock that is going downhill. But when you know that a company like Google has the potential that they do, and you think Google can get back up to where they were for example last december at $718.42, you buy it.

Now, you may ask, how in the world does this article have anything to do with domains. And my answer to that, is although this article primarily focus’s on the internet company Google, it shows a common relationship of cause and effect. The economy has a cause and effect relationship with domains as well. When the economy is low, domain investors tend to lighten their domain budgets, which hurts the overall domain economy when there isn’t enough money to be spent. My personal suggestion at this point is to buy, not sell your domains, unless of course you get a reasonable offer while we are still in the crappy economy we are in. Wait until the economy climbs on up, and then sell. Don’t be scared, the economy fluctuates, and that’s something people often forget. Good luck domainers! I would love to hear your comments!

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