Analysing Google

I finally found a news report that might explain why the price of Google (GOOG) dropped sharply yesterday. It is an article in PC World datelined Thursday, November 08, 2007 12:00 PM PST. I never know whether 12 pm is noon or midnight but assume it is noon.

"After a frenzied build-up, Google, as you probably know by now, did not announce the gPhone. Instead, the company announced there might be a gPhone in your future. The announcement was heavy on future potential and light on current reality.

The basic announcement was quite simple: Google announced that the Open Handset Alliance (OHA) has been formed to create open source, Linux-based software for mobile phones and other mobile devices. With Google's clout, this effort may fare better than previous efforts along the same line, but we will not know for a while."

However, this is old news and I fail to understand why it should have affected the stock price only yesterday.