Tuesday, January 31, 2006
Google crashing in after hours
Google's stock is crashing in after hours after reporting stellar but not stellar enough earnings. The stock was down as much as 16% in after hours trading. Currently, its down about $55. Tomorrow, several billion dollars of the American public's wealth will appear to go into thin air. However, the truth is that this money went from the public to the insiders and early investors in Google in the first two years after Google's IPO. Caveat emptor. The stock had a small move for those who bought today, however, for the people that invested in the options, tomorrow should be a profitable day for those who invested in call and put options or were bearish on the stock and only had put options.
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