This is a bit risky, as GOOG is very news sensitive - as shown last quarter, just a little let down can send the stock price plunging down double digit percentages.
Before you read on: This is intended as a short term trade (ie: hold < 2 weeks), intended to take advantage of the mob mentality. Remember, this is not a long term portfolio recommendation. Continuing on, I'm saying buy, and keep a really tight watch. This hinges on Google's Q1 earnings report, and the direction the price goes will snowball from there. If it's a bad result, let go of this right away I'm gonna go out on a limb here and say that Google won't let down investors this quarter.
Three reasons:
- Yahoo just hit their mark, showing some positive figures about the internet ad market in general which bodes well for Google.
- I don't think Google would have issued 5.3 million shares so close to their Q1 report if they didn't have something good going for them.
- Google still has room to expand in the search and internet ad markets - with China open, I think there is enough perceived growth potential there for investors to keep their overly lofty optimism about Google's future growth. The good report (if it turns out to be) will add fuel to the crazed bullish expectations and push up the stock price further. Might as well cash in on the mob/analyst hysteria while you can.