Overture's stock price, especially in the year before it was purchased by Yahoo, went up and down like a yo-yo. Google might gain a new partner or feature, and Overture's stock would plummet over the course of a day way out of proportion to the news. Then Overture would gain in some way, and the stock would shoot skyward.
Now Google potentially gets to enjoy the same fun. Last month, I asked several search executives what impact the Google IPO would have on the industry. Yahoo's Jeff Weiner, senior vice president of search and marketplace, smiled knowingly and quipped that being publicly traded would be a "very different experience" for Google. In other words, welcome to watching your stock yo-yo!
Yesterday, Amazon (a Google partner) got tons and tons of major coverage for pulling the "beta" moniker off its new A9 search site and adding some additional features (see Gary's write up for more). This was Google's first test. Would potential competition from Amazon cause investors to freak out?
Apparently not. Google ended yesterday nearly $2 higher ($112) than it began. I still suspect the yo-yo factor will still rear its ugly head in the future. But for this first challenge, Google came through just fine -- as did Yahoo, as well.
Meet Your Favorite Search Engine Watch Contributors
Many of SEW's leading expert contributors will be at ClickZ Live, the new online and digital marketing event kicking off in New York (March 31-April 3). Hear from the likes of: Thom Craver, Josh Braaten, Lisa Barone, Simon Heseltine, Josh McCoy, Lisa Raehsler, Greg Jarboe, Dan Cristo, Joseph Kerschbaum, John Gagnon, Eric Enge and more!