Google dipped below $500 per share on Monday and Tuesday before climbing back out of the doldrums Tuesday morning. Google is suffering from missing its earnings estimate and from the news of a potential Yahoo buyout.

Both of those events contributed to the plummeting stock price of Google and has made the price extremely attractive for investors. I’ve been accumulating at prices between $500-515/share and don’t think the stock will stay below $500 for any extended period of time.

I believe something good may come of the missed earnings incident and that is Google will have to begin reigning in their runaway expenses. Spending lavishly on unnecessary items within their headquarters has made headlines, but it does nothing but burn up the bottom line. I believe Google can still maintain their ranking as the best place to work in America and still find a way to control costs enough to boost earnings in the future.

Google’s assertion that Microsoft buying Yahoo would cause anti-trust concerns is way overblown and just an attempt for them to derail the merger, but in all reality they are just making a better case for the deal by proving it will cause increased competition – something that Google has never had. As it is now, Google is to the Internet what Microsoft was to the Operating System. If Google doesn’t tread carefully in the future they could be facing antitrust issues themselves.

[tags]microsoft, yahoo, google, shaun carter, stock, investing, economy, search engine, antitrust, earnings, merger, buyout, technology, internet[/tags]