Google had a relatively slow week at the stock market and did not show any exciting activity. Google Inc. (NASDAQ:GOOG) is no doubt one of the biggest companies in the world when it comes to the internet and gadgetry, but political scandals and Google’s questionable activities and practices have created a lot of hurdles for the internet giant. Google is now involved in one too many legal issues and fighting hard to retain its goodwill among its users. To its investors’ disliking, the company is being forced to spend a heavy portion of its revenue on these court cases and their legal proceedings.
The European Union fiasco hasn’t subsided yet; Google is still being pursued by the European Union in the anti-trust case; on top of that the Germans are pushing for a tax against Google in Germany. Now, another case has resurfaced to haunt Google; the right to be forgotten law is being shoved down the company’s throat and Google is fighting hard against it. It will be interesting to see if Google would compromise on a few issues to continue its business in the European region. The main issue is if the company agreed to all these allegations then it will be confessing that Google indeed practices unlawful activities.
Google has also confronted Mississippi Attorney General Jim Hood, who has been pushing a bill against stopping online piracy. The anti-piracy bill can really put Google in a difficult position, so to deal with Jim Hood and the bill, Google has stepped into the Federal Court and asked the court to stop Jim Hood from demanding information from Google. This could mean yet another lawsuit for the company, which will take away more money and resources.
How Share Price Faired
Google started trading on December 15th, 2014 at 524.13. The stock soared to 525.37 before going downhill to 515.40. The internet giant concluded the day at 515.84.
The next day, Tuesday, Google resumed trading at 513.61 and within hours rose to 515.58. Later on the stock declined to 497.19. Google concluded the day at 498.16.
Wednesday, Google’s stock started trading at 499.86. Improvement came within hours and the stock went up to 509.07; however this surge in the stock value was short-lived when the stock dropped to 499.11. Google’s day concluded with the stock at 506.45.
Thursday, Google started trading at 515.82. The stock showed some improvement by going up by 1 percent to 516.25. Later on the stock lost some weight, slipping down to 506.56. Google closed the day at 514.62.
Friday, Google started trading at 516.99 and went up to 520.81 within hours. Later in the day the usual hit left the stock reeling at 508.86. Google recovered to 520.04 before concluding the day and the week at the stock market.
As mentioned many times before that in the short-run a company of Google Inc.’s (NASDAQ:GOOGL) stature will not be effected much by what is going on at the moment; however in the long-run all these controversies and court cases will start to catch up to the company’s reputation and revenues. Therefore it is important that Google formulates an effective strategy to deal with its current issues and stay clear of these controversies as much as possible in the future.
