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Is Google following Apple's lead?

April 8, 2013: 1:10 PM ET

Google's stock is down 9% from its all-time high but there's still room to fall before panic should set in.

Apple may not be the darling of every investor's eye but Google is starting to lose some love too.

Just a month ago, shares of Google were well on their way to $900, with some analysts even calling for Google's stock to hit $1,000.

Even though shares are still up 9% for the year, they're moving further and further away from their March 6 all-time high of $844.

What helped propel Google (GOOG) in the first place?

A report over the weekend from Barron's credits Facebook's (FB) botched IPO for Google's recent run. Seems counterintuitive but the disastrous debut reminded everyone of the dotcom craze (and ensuing crash and burn). As investors and analysts regained confidence in Google's search business, and its ability to turn a profit, the company became a dominant force, according to the Barron's article.

So much so, that it helped knock Apple (AAPL) off its pedestal.

Shares of the iEverything company are down 20% so far this year. In fact, Apple's stock has slumped nearly 40% from its all-time high of just above $700, hit last September.

It might be too soon to say the bloom is off Google's rose, but StockTwits traders have turned cautious.


$AAPL strength = $GOOG weakness & vice versa. #spread

CoderTrader may have spoken a little too soon. Granted Apple is only down fractionally today but it's gotten hammered this year. Maybe the next iteration of the iPhone will help turn things around.

$GOOG lots of traders expecting a bounce early this week. Makes me wonder if we don't just blow through fri bottom unexpectedly.

There's definitely a nervous vibe out there. But the old adage 'you can't buy something new 'til you throw something out' may be coming to fruition.

Last month, Google announced it was shutting down Google Reader as part of its annual spring cleaning.

Monday brought speculation that Google may be willing to pay $1 billion for mobile messaging app WhatsApp. And Google may also be getting ready to launch its second fiber optic network, Google Fiber, in Austin, Texas.

$GOOG wow did this become broken fast. my stops are miles away. Long term trend following can be miserable at times Bullish

Good call howardlindzon. It's way too soon to say Google is headed for a sustained slump. Hang in there.

$GOOG it seems counterintuitive / but so is #market always - u don't want to catch falling knife so we wait 4 confirmed bounce b/f new longs

I couldn't agree more. We've seen stocks hit new record highs this year and we're not even 6 months in. I would expect pullbacks and mini-corrections across the board.

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Catherine Tymkiw
Catherine Tymkiw
News Editor CNNMoney

Catherine Tymkiw is a news editor at CNNMoney where she helps oversee breaking news coverage and futures planning. Previously, she was the investing editor. Prior to joining CNNMoney, she was the online editor at Crain's New York Business and has nearly two decades of reporting and editing experience. She tweets @ctymkiwcnn

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