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Standard & Poor's Flexes Muscles, Downgrades Google

Yan Matusevich
6

If hadn't heard of Standard and Poor's before the American debt crisis has turned the credit-raiting agency into a household name. While the folks over at S&P were busy downgrading the credit rating of the American government underscoring America's bleak future, the same people have also downgraded Google stocks as a result of the Motorola acquisition. Not trusting in America's debt-ridden government is one thing, but why have so little faith in arguably the world's most influential corporation? 

As rational human beings we've been brought up to distrust horoscopes and psychics, but when it comes to stocks and credit ratings: Standard and Poor's is a god-like entity. Based on its prognosis of the future stocks collapse, investors panic and CEOs start chewing on their million-dollar ties. So when Standard and Poor's announced on August 16th that Google would be buried under the financial burden of dealing with Motorola - all of Google's stocks took a rapid downward plunge. 

Just as suddenly the credit rating Gods had spoken, Standard and Poor's reversed its decision with the snap of a finger. Apparently, Google's stocks weren't all that bad and it would still be advisable to buy them for the near future. Now these sudden changes in their predictions makes the credit rating agency extremely suspicious. It's no wonder that the US government is in the process of launching an in-depth investigation into the murky dealings of the company. 

Standard & Poor's is finally showing its true face: a credit rating agency with loads of power and zero credibility. Let's just hope that Google can withstand the threat of these type of speculators and continue solid growth together with Motorola and the entire Android ecosystem. 

 

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Comments

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  • Gee B. Aug 23, 2011 Link

    Okay. Now I don't want to sound dumb but what does that even mean? If their stock price is lower then they wont get as much money from stocks right? But they're already rolling in dough from sales... so what does it matter?

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  • Anette West Aug 23, 2011 Link

    ::blink, blink:: I think all digital money is fake. Like karma or something.

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  • Tyler Morrisson Aug 23, 2011 Link

    So the USA can't pay its bills so the downgrade the raiting I get that. But Google has enough cash to BUY MOTOROLA and they get downgraded... I dont know what S&P is smoking, but I want some of it.

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  • Guilbert McEwans Aug 23, 2011 Link

    I dont knwo why but this makes me glad I live in Canada.

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  • Miranda Endhoven Aug 23, 2011 Link

    To be honest as long as I still get my appsI dont care. Google is going to make money either way and theyll keep supporting Android fans. So whatever Standards and Poors says really is meaningless.

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  • Georg Wiese Aug 23, 2011 Link

    I hate the discussion concerning rating agencies. Whatever they say, they're working all day on it and surely have more knowlegde than any of us. Moreover, the fact that stock buyers trust them shows that their ratings are usually trustworthy.
    By the way: The USA is bankrupt, Ron Paul for president :P

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