GOOG is plunging on big volume as the CFO, speaking at a Merrill Lynch conference, is saying that growth is slowing in search and that the company will have to find other ways to boost revenue. He also says that local and mobile products offer "a lot of opportunity".
The fact that Google is slowing from its torrid pace is obvious. Even the CFO went on to say that the slowing is due to the "law of large numbers" and the the slowing growth won't be "precipitous".
I think the 10% drop is an overreaction, unless the company is in danger of not making its earnings estimates. So we'll have to see what the trend is going forward for next year's earnings projections. But if the continue to be in the neighborhood of $12, then the stock is not expensive at 30x EPS.