Google's stock price has been rocketing lately, hitting a high of 135.02 today before petering off, shedding a couple of dollars as it did so. There's a momentary pause in the action everytime it hits a psychological panic mark which seems to alarm stock buyers into thinking for a moment "hey, wait a minute, is it really worth this much?".
I've been tracking Google since it first came out of IPO. Keeping in mind that the IPO price was 85, and a month later, it's up in the 130ish region, I'd say that Google has some pretty powerful wings. It flew by 90 with no problem. It went up past 100 to about 108 when the first run stopped. It dropped for a couple of days back to the low 100s before beginning it's upward surge to 130+. I think, however that Google's run is done for at least the next couple of weeks. My guess for when Google first debuted, was that at the end of the year, we could see Google hit 135, possibly 150, and probably not too much past that. (When you start getting down to 2 x IPO value, people really start getting scared).
This is what I'm thinking: After the veil of silence was lifted yesterday, brokers were telling their clients to buy Google, hence the run up in both today's and yesterday's trading. Now that shares of Google are safely tucked into their portfolios, we should see both a slowdown in volume and price.
What do I think about Google stock? I think people need to sit back and think about whether or not it is worth $130. Because what Google is selling is services and advertisting. True, they have one of the most recognizable names in the world, but the question is can they generate income on the strength of that name in Google branded services and get people to pay for it? If your answer to that question is no and you still want to stay in tech stocks, then perhaps you'd be better off investing in eBay.
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