In early January, I came to this forum to warn you all of the impending technolgy crisis. I suggested shorting Apple and Goog. I was laughed at, however, because I respect humanity I have come back to warn you all of whats going around the trading desks at the big institutions. Google's revenue is declining as a result of the China fiasco and the bad decision to deploy the vastly unpopular phone. I have come here to Elitetrader on a mission of mercy to get you out of your Google shares today. Listen folks, Google is going to have an earnsing shortfall next quarter. The wonder years are now gone, finished. Once a momo stocks loses its momo then they usually NEVER recover. While the founders of Google run off with billions of dollars its investors sit there and roast. Poor ole Mr. Johnson's retirement fund keeps getting blasted day after day as Google loses more market capitalization. When Angelo Mozillo sold his shares of Countrywide it was a clear signal to sell your shares as well. Those who held on were wiped out. The founders of Google are now selling their shares in mass and running out that door with billions of dollars. If you are smart, then you will sell or short GOOG today. I mean TODAY, NOW. Remember, shareholder lawsuits only recover pennies on the dollar. Sergei is going to be running off with Mr. Johnson's retirement fund for a wonderful retirement in mother Russia sleeping with some young chick. Mr. Johnson is going to get the same ole shtick.
What about MSFT, Bill sold all his shares recently? I think its easier just to short the whole market right now.
Where does Google derive all of its revenue from? Advertisers. When people don't have any money to buy stuff, why would advertisers be buying advertising? IMHO, the whole software end of the tech sector is broken almost beyond repair. The business models of today are just as flawed as the business models of 2000 (ie: Twitter. 156 employees. Revenue = $440k according to Wikipedia). Online advertising isn't sustainable. Building businesses simply with the intent of trying to sell them to a bigger company isn't sustainable without actual profits and cash flow. The dream of Internet content, or internet sites being 'free', has proven to be a dismal failure. "Free" software has destroyed the ability of for-profit software companies to earn profits. An utter disaster on so many levels.
The wonder years. Stocks are like people. Our greatest strengths and vibrancy appear in our youth. Initially, research showed that stocks made their best advances within eight years of their IPO. But subsequent IBD research has found that 15 years or less is the optimal time for winning stocks. cont on link... http://finance.yahoo.com/news/Investors-Corner-Younger-ibd-3406218626.html?x=0&.v=1
Instead of shorting goog outright I would buy bidu /short goog in equal dollar amounts. Bidu has been outperforming for months and if the markets start making new 52 week highs again I expect bidu to really take off while goog might lag the sp. sac capital is a huge holder of bidu I wonder if they are short goog as well.