Reflections on Google's Share Price

A posting by TechCrunch has caused me to reflect once more on Google's share price. I have posted on the Google Share price twice previously:
- How quickly could Google stock crash? (when they crossed the $600 mark at the beginning of October)
- Google shares at $700 (at the end of October)
Whilst I initially said that I would (theoretically) sell at $700 and never look back, the rapid growth made me think it would probably be worth hanging around for the $1,000. My first instincts, however, were correct, reminding us once more of the dangers of being too greedy on the stock exchange. Now, with Google shares falling rapidly to $495 the question on everyones lips is how much further will they fall?

Whilst Google shares have lost a third of their value they are only back to their August value. The rapid rise can be seen as a momentary aberration, any big downturn in the economy is yet to show in the share price. So my latest Google share prediction:
The shares will bob around the $500 mark until Microsoft's buyout of Yahoo is confirmed, at which point it was drop down to the $450 mark (possibly even as low as $400. Extremely slow growth, or even recession in the US will then see shares fall to $350.
What can Google do? Buying Yahoo would be seen as desperation, and I doubt they could match Microsoft's offer. Basically they have to just keep doing what they are doing and hope that more people don't start questioning whether or not they are living up to 'do no evil'. Personally I find myself slowly breaking the Google spell and typing ask.com more often.