Google fell nearly $10 in after-hours trading last night following a bleak assessment of the economy by its chief executive, which could have a broader impact on other technology companies today.
At the Morgan Stanley Technology Conference in San Francisco yesterday, CEO Eric Schmidt
said global economic conditions are "pretty dire," adding that "the real pain being felt by corporations worldwide will translate to our world," according to news reports. (Despite that outlook, however, it was also disclosed that Google awarded $6.3 million in executive bonuses.)
Schmidt's remarks are certain to be scrutinized for potential impact on other companies and indexes, especially because technology has fared relatively better than other sectors in the latest market selloff. Google is a bellwether for online media and other digital businesses, controlling more than 70 percent of all Web-based advertising, and carries a heavy weighting of 4.16 percent of the Nasdaq 100 and 5.55 percent of the Technology SPDR exchange traded fund.
Shares of GOOG finished the regular session off slightly on the day to $325.48 but fell as low as $311.50 in overnight trading before settling back to $316, down some 3 percent from the close. GOOG has been generally recovering from its November lows under $250, albeit with some bumps along the way.
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Mike Yamamoto is managing editor of OptionMonster.com.