When Standard & Poor's Equity Research downgraded the shares of Google Inc. (Nasdaq: GOOG) from "Buy" to "Sell" last week - and slashed its target price for Google shares from $700 to $500 - we were blunt in stating that the ratings agency had blown the call.
Looks like S&P must've heard us.
On Monday, just three days after downgrading Google, S&P did an almost-total about-face on its much-debated call - and upgraded Google shares from "Sell" to "Hold." Frankly, these ratings firms seem determined to operate in a flawed manner - the S&P/"Sell Google" saga only underscores what we've been saying since 2007, when Money Morning warned readers that these firms failed to warn us about the subprime-mortgage disaster. (Don't forget, it was another unit of S&P that downgraded U.S. debt earlier this month. That downgrade, to be really credible, should have been announced several years ago, during the height of the global financial crisis.)
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