Google sold off in a big way with the market crashing this week, falling from the recent post earnings high of 713 to a low of 644 at close on Friday. The question I hear from everyone - when is the right time to enter Google stock?
For me - this chart is scary. Do you see all that space in the chart? That's a lot of gap between the old trading range and where the stock is at current price. A lot of room to fall if the market keeps tanking. Also, Google at present doesn't pay a dividend, making free-fall harder to stop. That said, Google does have an impressive balance sheet packed with cash and could buy its own stock if it so desired. But, will the company do this as Apple did recently?
Bottom line - I would not buy here. That chart is too ripe for a big downward move based on how far the stock is above the moving averages. Wait for this stock to 'settle' down. 644 might turn out to be a decent price after the dust settles, but I wouldn't enter at this time.
Short term rating = HOLD
Long term rating = HOLD
For me - this chart is scary. Do you see all that space in the chart? That's a lot of gap between the old trading range and where the stock is at current price. A lot of room to fall if the market keeps tanking. Also, Google at present doesn't pay a dividend, making free-fall harder to stop. That said, Google does have an impressive balance sheet packed with cash and could buy its own stock if it so desired. But, will the company do this as Apple did recently?
Bottom line - I would not buy here. That chart is too ripe for a big downward move based on how far the stock is above the moving averages. Wait for this stock to 'settle' down. 644 might turn out to be a decent price after the dust settles, but I wouldn't enter at this time.
Short term rating = HOLD
Long term rating = HOLD