Google’s Employees See Stock Drop 60%

October 12, 2008 by
Filed under: DAILY Dose of PC News 

Google Stock Chart

As the world faces an uncertain economic future, one of the strongest companies in the world saw their stock options drop 60% this past week. As the Dow tumbled day after day, Google’s employees had to watch their investments take a crash dive.

Techcrunch was one of the first to report on Google and its plummeting stock option price. On Friday morning, Google’s stock was trading under $329. According to Techcrunch, “That’s a key price level Google employees are watching because a huge chunk of their options (1.7 million across the company) were granted with a weighted average exercise price of $329.78. The options are worthless under that price. All told, 61 percent of Google’s stock options granted to employees are currently under water.”

The report, which was a big shock to some Google enthusiasts, continued to show us just how bad last week was in regards to Wall Street by stating, “only eight days ago Google’s shares were trading at $411 and three months ago they were above $450. In that time, a lot of paper wealth has disappeared and along with it incentive for many recent hires to stay.”

Next week, Google releases its earnings which could rally the stock so that Google’s employees will regain their investments or it could be a very bad moment for their employees.

Recently, PC Authorities reported that several analysts were confident that the IT sector would be fine in this damaged economy. Sadly, this global economic meltdown could be a detriment to all parties. As always, time will tell.

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