Leave Google Alone!

Why are tech shareholders so greedy? Yahoo defends itself from a hostile takeover, and Wall Street punishes them for shunning a suicide payday . Now, Google reports spectacular growth, and Wall Street punishes them for not growing spectacularly enough. Uh, what? Google (GOOG) reported net profits of $1.25 billion, or $3.92 per share for the second quarter. Excluding stock-option costs, Google came in at $4.63 per share. The Street had expected $4.74, according to a Thomson Financial survey. Despite Google’s shares tumbling below $500 for the first time since the company reported its last earnings, analysts insist shareholders shouldn’t worry. “There’s more positive here than negative,� said Youssef Squali, an Internet analyst with Jefferies & Co. “People are freaking out for nothing.� Google’s gross revenue climbed 39% from a year prior to $5.37 billion and its hiring declined 10.3% from the same period, a sign that Google is control...