Im seeing signs of their vunerabilty. I think they are being squeezed by potenial lawsuits from copyright holders. i see the stock 100 points lower but not right away. Its simply a market issue. They had their time and their growth pattern is shrinking. Also I don't think MSFT will sit back and let them dominate. Is about to be an all out war. They just announced a skype type of program and I think this cuts into to many people's territory. They are primed for a major blow out. Great company though. eps won't be sustainable also the HR cut is a tell tale sign of their growth.
NASDAQ is the strongest index YTD: +2.8% DOW YTD: -8.65% S&P YTD: -6.7% XLK (technology ETF) is +8.44% YTD GOOG is +20.20% YTD Why the hell would anyone want to short a company in the strongest index (NASDAQ) and belonging to one of the best performing sectors (Technology). Look at the stock market cashflow on WSJ's website... the tech sector stocks are usually the biggest recipient of cash. Knowing that NASDAQ and Technology stocks are outperforming other indexes and the market in general, why would anyone want to short a stock that is even significantly outperforming its own strong index and sector? Unless you have reason to believe there will be some Enron type accounting corruption or w.e., shorting GOOG is just plain dumb. Don't short stocks that are outperforming the market...going short anything not financial related in general may be not the best either considering the S&P 500 is down 40% in the last year.
Why are you guys also so fixated on charts. Someone even mentioned the Elliot Wave... how retarded is that? In order for the charts to work, that means that other traders must see the same pattern and act accordingly on it. Support and Resistance levels are the most significant factors of charts. The one that should be noticed is GOOG is making higher highs and higher lows = bullish. In all reality though..GOOG will follow the rest of the mkt. It may lead on a single day of earnings or some important news, but its not a mkt mover like certain financial firms are now (JPM, GS, BAC, etc.). As I noted in my previous post, GOOG is significantly outperforming every index too = bullish. You "chartists" should also realize that the fundamentals won't matter much. Pension funds, mutual funds, and other big d!ck hedge funds.... institutions that can move GOOG $100+ won't be unload so violently that it will be 100 in 1 month if the numbers are bad. Trade those options if some of you are confident in this trade. Even Leaps at that level are probably awfully cheap (for no reason huh )
Yep,sometimes it seams that buying technology stock is like your betting that laptop you just bought is gonna worth more in one year.
Im watching the Goog crash and Its coming. Here's why: Marc Cuban once said that you never go against Microsoft. GOOG is foolish to believe that Bill Gates who is an ego maniac will let them prosper. Bing is worthless but it will be the parasite that will continue to eat at Goog and as small as it is it will do major damage to their brand. The 4g market is Bing's strength and this will be where GOOG loses traction. The latest acquisition of ON2 for 100 million dollars is a major mistake. MSFT owns a major part of ADOBE which makes the Flash player. Youtube depends on Flash. Most PCs use Vista or xp and thats where Goog exists. The new Goog application puts MSFT and APPL on the same team. Thats dangerous. You may beat MSFT but in the long run when Bill and Steve get together they are unstoppable.
Gates has left MSFT: http://www.msnbc.msn.com/id/25408326?GT1=43001 MSFT doesn't own any significant shares of ADBE: http://finance.yahoo.com/q/mh?s=ADBE
the market places a premium on GOOG and you have to ask yourself one question: WHY? What I think most people miss that have doubts of googs long term profit potential is this: INFORMATION. They have INFORMATION on the most valuable sector of the economy and the world. INFORMATION on the public/consumer/people-this INFORMATION will prove to be invaluable in the new normal economy. People are changing their shopping habits and who knows who,what,why,where, when and how they are changing it? GOOG! Next Do you realize the monopoly on the search that GOOG has? The market share is absolutely invaluable and cost to entry is so high that it will be very difficult to take GOOGs position; if not impossible. This is a self fulfilling stock.
BING and others will eat away at Goog. I believe that GOOG is in trouble as soon as search becomes easier due to higher processors. Also the next platform is the cell phone sector and there is competition looming. It is over valued and MSFT will not stop until they wipe them out. APPLE and MSFT vs GOOG will be great fight. DO you remember infoseek. I rode that from 3 to 80 in six months. They were taken over by Disney. Now its Go.com they have an algorithm that blows the GOOG algorithm away. Too bad Disney is not interested in that market.