Given the huge readership of our little post on LookSmart this morning, some people might think we think LookSmart’s bad quarter is the sole cause of Google’s 7% plunge today. We don’t.
Unless there’s something we don’t know going on (Google spending billions on wireless spectrum, Google in talks to buy Facebook or Time Warner, etc.), we think the cause of Google’s plunge is:
- A boatload of bad economic and advertising news that hit the market this morning.
- The collective realisation that Google is likely not immune to a recession.
- A general race from rocket-fuel stocks to safety (a.k.a., sudden aversion to risk).