A lot of tech stocks declined today, not just GOOG, though GOOG declined quite a lot. Even (Adobe) ADBE declined by 2.19%.
Possible explanation: If you were a big institutional fund manager with a large portfolio, would you put your money in thousands of small-cap companies or a few large-cap companies? When an opportunity like FB arises and you want to get in, what would be the easier way to get the liquidity needed to buy FB? If you don't have very sophisticated trading and portfolio management technology, one of the easiest ways to get the liquidity is to sell the large-caps first, and GOOG could be one of them.
Another possible explanation: GOOG and FB are perceived to be enemies/antagonistic. So, when one stock has a positive event (IPO that provides lots of liquidity), the other stock is impacted. This is a psychological explanation. I can't prove it.
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A lot of tech stocks declined today, not just GOOG, though GOOG declined quite a lot. Even (Adobe) ADBE declined by 2.19%.
Possible explanation: If you were a big institutional fund manager with a large portfolio, would you put your money in thousands of small-cap companies or a few large-cap companies? When an opportunity like FB arises and you want to get in, what would be the easier way to get the liquidity needed to buy FB? If you don't have very sophisticated trading and portfolio management technology, one of the easiest ways to get the liquidity is to sell the large-caps first, and GOOG could be one of them.
Another possible explanation: GOOG and FB are perceived to be enemies/antagonistic. So, when one stock has a positive event (IPO that provides lots of liquidity), the other stock is impacted. This is a psychological explanation. I can't prove it.