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The press is beating GOOG down. The reason that it drops on no new information is that the average investor didn't bother to run the calculations to realize that GOOG is way overvalued. When a newspaper article points out the obvious, the average investor realizes they are in a bad stock and starts to dump shares. Same with analysts, it is the herd mentality plus people telling investors what they already should have figured out for themselves.

Dapper Dan

Overvalued/Undervalued; who cares? Wouldn't you rather take a look at the other hundreds/thousands of companies not getting any coverage that may also provide outsized returns over the next few years? The odds of Google being the next Microsoft are likely worse than winning at Caesar's.

Paul Hickey

GOOG is actually following the trend of prior Barron's hackjobs in the past four years pretty closely. Usually the stocks trade down an average of 2% and trade flat from the open to the close. What is noteworthy however, is that even though Barron's usually picks on stocks that are less beaten down than GOOG currently is, the impact on the opening price was the strongest of any negative cover story in the last four years.

Nathan Whitehead

Ah, but even if the article doesn't have any new information the fact that Barron's chose to print the article does pass on valuable information.


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