Yahoo is shown as a bubble stock of 1999-2000 which was added to the S&P 500 in December 2000. During the next few months after the addition, the stock plummeted. This created losses for investors in index funds. Usually, investors in index funds expect to be investing in large, well-established companies instead of high-flying technology companies.
A similar case can be argued for Google's addition into the S&P 500 on March 31, 2006. It's been added near its peak. The only reason it's not being added at its peak is Google's slightly disappointing earnings last quarter. If the company follows Yahoo's pattern, the stock will be trading at a significantly lower price by the end of this year.
Charts are from Yahoo Finance and show the maximum range available for each stock.
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