I would let google retrace a bit. Look at some companies that are doing well in spite of the sub-prime problems. My largest holding right now is CPHD. Been in it since 12 and won't sell under 45.
GOOG slips another 2 1/2 % today to just a touch over $600. That's got to hurt for those who were buying around $700.
I would love to have some shares of Google, my rule of thumb is when you see the market falling down the skies, when everyone is rushing to get out. This is the time to get in. Of course use the spare cash you have and make sure you are a long term player.
Okay, it all depends on what timeframe you want to buy/hold the stock. If you want to hold for years, it should go much higher, but if you want to buy/sell in a few weeks, then have to wait, maybe you should buy puts or even short it Here is what I see on GOOG. If trendline is important to you, then wait for the stock touches the lower trendline. If 200 day MA is important to you, then wait for the stock hits that area and see if it can hold as a support. If Fibonacci retracement is important to you, wait for the stock retrace to a critical Fibonacci level. Now look at this GOOG chart and use the above criteria. The lower trendline would be around $580, the 200 day SMA (simple Moving Average) is around $570 and 200 day EMA is around $585. 61.8% fib retracement is at $582. So the gravity of this GOOG stock is heading to 580 area in a few days. If you want to play the deadcat bounce based on the daily chart, buy around 580 if it holds, and sell at 613 or maybe 640 (50% and 38% fib levels) for $30-50 bounce - depends its strength. This play is based on the daily chart, the weekly chart still looks ugly, it might hit $550 after the deadcat bounce is over. Well, I think I am still good on charting stocks than doing Google Adwords. My first language is not English, I have a deep learning curve in Google Adwords, no way I can write promotion articles like most of you guys do I did make near 10000 analytical posts on stocks in three years span over investorshub.com, and I am one of the moderators of a very hot running board with near 1000 posts a day http://investorshub.advfn.com/boards/board.asp?board_id=2199 Go_Stocks Alias Born On: Tuesday, January 13, 2004 Boards Moderated: 26 Total Posts: 9980
Yup, the head and shoulders pattern is declining after a strong bull run and the game is over. If anybody doesn't believe me, you can read one of the most comprehensive analysis of Google's feature in this article. GOOG Drops 5% - Google Shareholders Taking a Beating The only thing I can say is I'm delighted because I'm shorting GOOG, so it's been a wonderful week for me.
Get your checkbook ready, I think you'll be seeing that price before the end of the week as the panic selling begins, however, you'd be much smarter to short GOOG at $550 (I know some big brokers looking at positiions under $500). If you look at the charts and realize GOOG has dropped close to 19.54% since November, there's blood on the tracks and it's only going to get worse. I don't think I've ever seen a stock lose 20% in two months and recover. Looks like the Web2.0 bubble burst is underway. I'm going short all the way and seriously considering taking up positons on AAPL as well. Why Apple, well, check this out from MarketWatch... Backdating probe had surprises for investigators
google stock prices will probably go up through the roof soon, cause they are the last website that will probably go down if something messed up the internet really bad.
Then something must be really messed up with the Internet...GOOG is down quite a bit over the last month
This I agree. But if there is a recession, consumer spending will be way down and business spending on advertising will drop significantly as well - Goog will take a big hit.
Everything I read indicates search marketing (ie spending with Goog) is on the increase. Companies are taking money from other forms of media and moving it to search.
I'm no technical analyst (I'm a fundamentalist myself) and in my opinion, I think they'll make it to about $800-$850 but WON'T break $900 ... don't ask where it came from but looking at a few quarterly reports and everything, my intuition is telling me that it will be around that area. Let's see if I'm right or wrong... it would be amazing if it ever reached BERKSHIRE HATHWAY (Warren Buffet's company... which last I checked (and it was a long time ago) was trading at $95,000 A SHARE!)
I think it would be a bad move by Google to follow the Berkshire Hathway model of never spitting the stock. BH is a holding company that owns major positions in things like Coke, Gillette, Geico, and others. On its own it does not need to attract interest from common investors. But if Google were to continue to lets its price rise without doing a stock split they would cut off the smaller investors that just cant afford single shares, let alone 100 lots. They need to maintain interest in the stock and need to keep the stock price affordable in order to do that. Else the supply of buyers will dry up. I'm surprised they have not split yet. $600-$700 per share would start to deter some traders and smaller investors. But they might be sticking with the high price (un-split) to maintain the WoW! factor and keep big interest in the stock as those prices make big news for a company that has only been trading publicly for a few years since opening at $108 in 2004.
Regarding a split... http://www.news.com/Google-Wheres-the-stock-split/2100-1030_3-6020207.html Old but related.
Price stock is demand and supply and investors don't consider that Google can surprise them. if it can, its quotation will grow, but I'm not sure
BRKA is trading at $131,200 per share and no way in the world will a tech stock like GOOG ever come even anywhere close to Warren Buffet's holding company. GOOG is already trading under $600 in after hours trading right now. After todays bloodletting on the work markets, there's brokers everywhere putting cyanide pills in their lunchboxes in anticipation of tommorow. Will tomorrow be "Black Tuesday" ???
It appears so. EU and Asian markets lost 5% today. I think that Goog follows the markets down over then next 3 months (of course not straight down) and find support at $500. Wish I had bought the Put at $650. /*tom*/