NEW YORK - Shares of Google Inc. on Monday fell below $500 for the first time since in August, days after a lackluster fourth-quarter earnings report and a $42 billion buyout offer from Microsoft Corp. for Google’s largest rival, Yahoo Inc.

In afternoon trading, Google (nasdaq: GOOG - news - people ) shares fell $19.11, or 3.7 percent, to $496.79. They have ranged from $437 to $747.24 over the past year.

Shares of Mountain View, Calif.-based Google have fallen 12 percent since Microsoft (nasdaq: MSFT - news - people )’s $42 billion bid for Yahoo (nasdaq: YHOO - news - people ) was announced Friday. Google reported its quarterly earnings after the market closed Thursday.

Stephen Houck, a former antitrust enforcer in New York state, predicted that Google could have a hard time raising antitrust concerns over the deal.

Additionally, on Sunday Goldman Sachs (nyse: GS - news - people ) analyst James Covello removed Google from the “Goldman Sachs Technology Favorite Growth” list, citing a recent sell-off in the shares. He noted the stock has fallen 14.1 percent since it was added to the list on Jan. 18, exceeding a stop-loss threshold.

In a note to clients, Covello attributed the sell-off to concerns about Google’s exposure to an economic downturn, particularly in light of the company’s fourth-quarter results, which missed Covello’s estimates and the Wall Street consensus.

However, the analyst maintained a “Buy” rating, and called the stock’s valuation compelling.

Source : Forbes.com

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