Can Google Beat the Bears and Outperform in 2013?

T = Technicals on the Stock Chart

As of January 8, Google was trading 3.45 percent above its 20-day simple moving average, or SMA; 6.97 percent above its 50-day SMA; and 12.98 percent above its 200-day SMA.

Since the beginning of 2013, the stock has been in an upward trend, climbing 4.35 percent this year to date. The stock is up 13.55 percent for the past 52-week period.

If you looked at the stock chart and thought to your self “what the hell is that massive drop in October?” you’re not alone. It may have faded from general market memory by now, but October 18 had a surprise for investors. An incomplete draft of Google’s third-quarter 2012 results was posted to the Securities and Exchange Commission website in the middle of the day, ahead of the scheduled release after the bell.

Earnings came in lower than expected and shares instantly dropped 9 percent before trading was halted for the rest of the regular session. By many standards, it was a fairly textbook case of market panic, and investors who bought the dip have clearly come out as the winners at the end of the day.

To contact the reporter on this story: staff.writers@wallstcheatsheet.com To contact the editor responsible for this story: editors@wallstcheatsheet.com

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