Google's Slump: Simple Supply and Demand

We all knew Google was fallible, but not this fallible. Yet there may be more of a selloff to come -- and it has little to do with anything that's changed in the past few weeks.

Google isn't just down nearly 40% from its Nov. 7, 2007 high of $747.24, it's basically flat with its price of nearly a year and a half ago. You could have bought Google in October 2006 and, even with the slow steady rebound in the stock over the past few days, still have a small loss.

Last week was full of all kinds of discussion about what it means. Some say the worm has turned. Others see a rare buying opportunity. There may even be some broader changes going on with online advertising that could spread beyond Google. ...