Google Backlash Builds

9:45 AM -- At the beginning of the year we commented that Google hype had peaked. We also laid out a case on why, at $430, the stock was overvalued.

Let's revisit the story now that the stock has lost $80. Our timing was fortuitous. But we thank Henry Blodget for pointing us in the right direction.

Google stock crashed hard after a disappointing earnings report. There was also the China thing.

Now, everybody's piling on (maybe too late?). This weekend, Barron's published an article that said, basically, Google might be overvalued.

That leads to more stories like this.

Next thing to watch for? A brewing storm around Google Desktop 3.0, which, as explained last week on TechCrunch, includes a "feature" that will upload content from your hard drive straight to Google's servers. Interesting feature. I wonder how the "Internet is Democracy" crowd feels about that.

Who had any idea that such a rapid-fire string of bad news and blog items were about to haunt Google?

It just goes to show you, the crowd can turn on a dime. And now the whole swarm of financial and trade journalists is all over the "Google's falling" story like ants over a spilled Coke.

— R. Scott Raynovich, Editor in Chief, Light Reading

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