Google CEO's 'Dire' Assessment

By Mike Yamamoto, managing editor of OptionMonster.

Google fell nearly $10 in after-hours trading Tuesday following a bleak assessment of the economy by its chief executive, which could have a broader impact on other technology companies in trading Wednesday.

At the Morgan Stanley Technology Conference in San Francisco Tuesday, 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 the outlook, however, it was 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 well as compared with other sectors in the latest market selloff.

Google is a bellwether for online media and other digital businesses, controlling more than 70% of all Web-based advertising, and carries a heavy weighting of 4.16% of the Nasdaq 100 and 5.55% of the Technology Select Sector SPDR (XLK Quote) exchange-traded fund.

Shares of Google 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% from the close.

The stock has been generally recovering from its November lows under $250, albeit with some bumps along the way.