Following a disappointing '06 outlook from Yahoo!, investment firms Stifel Nicolaus & Co. and Standard & Poors downgraded Google to a "sell" from a "hold." The fear is that, following lower than
expected earnings from Yahoo! and a lower guidance on margins for the year, Google could also disappoint. Yesterday's reality check caused Stifel Nicolaus to call Google's valuation into question.
"Where there is smoke, there is fire," a Stifel analyst said, adding that the time has come to focus on what these Internet companies are worth rather than where their stock may be going. In overnight
trading, Google's shares fell $18.60, or 4 percent, to $448.51.
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