Statement by Google CFO causes stock market stumble

It’s amazing what happens when the CFO of a company with an already over-inflated stock price makes a small statement like — “clearly our growth rates are slowing. You can see that each and every quarter”. While he was only stating what should have been plainly obvious by the quarterly financial reports, his statement was taken hard by an already volatile stock market. Google’s stock dropped by nearly 9%this morning and the DOW dropped and the down dropped by an entire percentage point. It’s amazing how much the stock market reacts to small statements like this. Take for instance, Rackable systems. They develop energy efficient, cool-running, equipment that will save companies more money than you can shake a stick at. This stock, by all analyst accounts is a win-win for everyone. Its one flaw today was that it had Google as one of many large customers. Take a look at what happened mid day at the announcement.

rackable

Luckily, the bulls saw this as a buying opportunity and drove the price back up. However, it just goes to show you how much a small statement by a powerful person can affect the economy in a single instant.

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