The big Internet search shop is set to report earnings after the bell today and if recent reports by tech giants like Intel (INTC) and IBM (IBM) are any gauge, a strong showing will be greeted with a rousing selloff.
Intel is down 2% since its earnings report Thursday, and IBM has fallen 3% after delivering better-than-expected results and a strong outlook Tuesday.
Wary that the winning ways of tech in 2009 won't last, investors have been willing to shed shares of some of the strongest players in their portfolios. This could be a troubling trend if the pattern continues.After hitting $629 at the start of the year, Google has dropped 6% in three weeks amid a broad market selloff. After the stock posted a 94% gain last year, Google's swoon sets an ominous beginning for 2010. The stock hasn't been helped by Google's threat to leave China and China's authoritarian grip on the Internet. Google's aggressive move to sell its own phone -- the Nexus One -- has also raised concerns about heavy hardware costs and margin erosion. The Google phone may have even engendered hard feelings among partners. Apple (AAPL) has been reportedly exploring a deal that would make Microsoft's (MSFT) Bing its iPhone search service, a potential snub for Google. More to the core of Google's business, analysts have been mulling a report by AdGooroo that uncovered a big drop in its search advertisers. In the fourth quarter, Google suspended 5% of its advertisers, says the report.
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