Why is Google stock so volatile?

Question

Some other stocks don't fluctuate nearly as widely as does Google. It is fun to watch each day as it swings so wildly. None of the other stocks I watch go up so far or down so far each day. Most curious!

If I had a lot of shares I would some days be deeply depressed and other days wildly elated.

Answer 1

It's a tech stock, new technologies constantly fight google. Google usually just comes back out on top after a short period.

Answer 2

It's an expensive stock, so on a percentage basis it is not as volatile as other stocks.  It has an average intraday range of about $15, or about 2.6% of the current price.

There are $50 stocks that have $5 intraday ranges, or 10%!  So those stocks are far more volatile than GOOG.

Answer 3

Tech stocks tend to be more volatile.  Also, Google doesn't deal in hard assets like Walmart or Dell.  They make their money by advertising clicks.  So its more difficult to forecast their revenue.  With deals like Microsoft/Yahoo, the threat of new competition makes the company's value even more uncertain.