With the stock market slowly moving off of lows set early last week, look for Google's (NASDAQ: GOOG) earnings to be just what the doctor ordered to rocket the market forward. As Brian White posted, "Google's shares have been shaken from a high of over $700 this past Christmas to under $543 today, as the company has joined in with the overall market teeter-totter amid continued housing worries and recession talk and FUD that spreads like wildfire every week."
I think that the company will report blow out numbers, as it has done in the past. The catch this time is that the market hasn't set Google up for a fall. I don't believe expectations are all that high due to the market rout. If Google surprises to the upside, this will be what the bulls among us have been waiting for, and I would expect a nice 7-10% market move to the upside in the next two to three weeks.
A strong Google report would help justify what I have been saying that technology will be leading the market higher. Microsoft (NASDAQ: MSFT) had a great report last week, let's hope Google has a similar report tonight.
Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com. DISCLOSURE: Writer's has no positions in any stock mentioned as of 1/31/08.
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Reader Comments (Page 1 of 1)
2-06-2008 @ 9:40PM
Max said...
Got any more brilliant ideas, Velvel??? LOL!!
1-31-2008 @ 4:47PM
tim said...
Ouch so much for earnings predictions, I've been there before. Take my advice and learn from the article I'll be posting tomorrow!
Tim
http://www.timothysykes.com
1-31-2008 @ 5:59PM
George Linder said...
Don't catch a falling knife.
Never bet on earnings............investing 101
2-01-2008 @ 7:06AM
Denise Keniston said...
I am a Google Adwords Certified Professional which means that large percentage of our annual revenues at Keniston & Company (http://www.kenistoncompany.com) is managing Pay per Click campaigns for clients.
Every week I hear from small business owners and marketing managers from large companies. Most of them feel a sense of urgency to get their businesses on the first page of a Google search query (HTTP://http://www.kenistoncompany.com/pay-per-click/pay-per-click-advertising.htm). To the average guy, Google is the only game in town.
I can’t say for sure about the longer term future of Google’s other ventures such as wireless or social networks apps., but I can say from our perspective Google isn’t getting hurt by the “recession” and the race to get the best Search Engine Placement is only picking up steam.