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What would be these be indicators of? What are some long term impacts that you see coming out of this?
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Chong Ser Jing
20 Mar 2020
Former Writer/Analyst at The Motley Fool Singapore
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Hello!
Over the short run, stock prices are volatile - they could fall for any reason. This applies to Google (technically, Alphabet) and Facebook too. Their shares definitely could fall in the coming weeks, or they could rise - no one knows for sure. And movements of share prices over the short run tell us nothing about the long-run future.
What we can be sure of though is, Alphabet and Facebook's share price will be higher five to 10 years from now, _if _their profits and cash flows are much higher five to 10 years from now. Over the long run, the price of a stock is governed by the performance of its business.