This whole facination with what happens after hours does not make much sense to me. The after hours is very illiquid and I have not seen any consistant relationship between a stock being up/down a lot after hours and then being up/down a lot the next day. Worrying about after hours trading is generally a waste. In the name of full disclosure I am long GOOG. Brandon
... sounds like you have called some type of top ... I will wait until a see a bit more follow through- beyond todays afterhours trading - to decide that a flavor of reversal has occured. .....
Trouble is with the range market by the time you spot the correction or rally its almost over. In this type of market you must anticipate, and throw all you fancy indicators out the window. This is one of the reasons so many cant trade a tight range market. It requires a leap of faith.
GOOG is down not even 3%. YHOO is down 10%, it's not a catastrophe. And it's in afterhours which is not that significant as Brandon mentioned.
The shift in expectations or sentiment is what's important with the news. The earnings season can shift the presumed line of thought and this may have just happened tonight.
Doesn't make sense to you? Tell that to the guy buying the high-print in YHOO or GOOG at today's 4:00 close. I doubt they're going to open unch tomorrow.
This could bring us back to the lower end of the trading range. Alot of very high expectations about a "blowout" quarter were built in and it ain't happening. Earnings growth is 8% ex energy and interest rates are going up and there is alot of euphoria out there. Time for some volatility hopefully
Just FYI, I used to run some e-commerce sites for some very big companies that I won't mention here and you would not believe how much retail traffic an ad can generate when it's placed on a large portal/search engine. I myself could not believe that so many people were clicking on the ads, and actually purchasing products! Mass behavior of the average consumer is not always easy to understand. Cheers!
omg, i'll bet you don't know how right you are. even if they are making money, it's a fickle business with questionable customer loyalty. wait until they get competition. right now they've turned internet searching into an exercise in informational inbreeding. i think it will be a marvelous short some time.