Will Google Continue Its Explosive Run Post-Earnings?
With shares of Google (NASDAQ:GOOG) trading around $1,010, is GOOG an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework.
T = Trends for a Stock’s Movement
Google is a global technology company focused on improving the ways people engage with information. The business is based on the following areas: search, advertising, operating systems and platforms, and enterprise. The company generates revenue primarily by delivering online advertising. Google is a search giant with most of the market share, largely because of its execution and delivery. An increasing number of consumers and companies worldwide are coming online, which will surely increase the amount of eyes on the company’s ads and, in turn, advertising revenue. At this rate, look for Google to remain on top of the Internet world.
Google shares are up after reaching an all-time high in after-hours trading on Thursday on third-quarter earnings that beat expectations. Strength in Google’s search sector, which makes up 92 percent of the company’s overall business, was credited for the growth, according to CNNMoney. Earnings came in at $10.74 per share and sales grew 12 percent year-over-year to $14.9 billion. Google still showed losses in its mobile search and Motorola businesses, however.
T = Technicals on the Stock Chart Are Strong
Google stock has been exploding to the upside in the past several years. The stock is currently trading near all-time highs and looks poised to continue. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Google is trading above its rising key averages, which signals neutral to bullish price action in the near-term.