Google shareholders, look out below

As Jon Berr just covered, Google (NASDAQ: GOOG) missed numbers pretty badly after the bell today. In response, the stock is down about $43 after the bell -- good for a quick 8% loss of market capitalization. Despite the fact that the company still displayed solid year over year growth, I'd like to warn investors not to jump into this stock before this newly forming down-move is over -- don't fight the momentum in this stock or you'll regret it.

Unfortunately for Google shareholders, I don't think the stock is going to bounce back tomorrow or in the immediate future for a couple reasons. First and foremost, investors aren't going to be as willing to pay the very rich valuations Google had demanded anymore. Why? Well, investors were paying these multiples for a company that historically was able to kill analyst estimates (last quarter Google beat expectations by more than 11%).

In addition, for the first time in a while Google is probably going to begin catching analyst downgrades. While we all know that analysts aren't the go-to for financial decisions, unfortunately their words tend to move markets and any Google downgrade is likely to further this downward move.

Lastly, less than 3% of the float is short. As a result of this fact, I don't think the stock is going to immediately bounce. If a company is down big with a large short position when compared to its float, oftentimes the shorts rush to close their positions which can serve to support shares. Clearly this won't be the case.

If you own Google, keep ya' head up.

If you don't own Google, congratulations.