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Shorting Google stock -- act of stupidity or genius?
It's obvious by now that Google's corporate evolutionary trajectory is very different from Yahoo's. Yahoo is basically a medial company with an advertising veneer. Google is more of a technology company with a robust and wideranging advertising platform. Moreover, it continues to expand its search marketshare and constantly improves its core technology.
However, Google (GOOG) IS an advertising-dependent company. During recessions, the advertising industry usually crashes. Do you see GOOG taking a beating due to its advertising exposure? Or does the adworks/doubleclick model have features that make it partially immune to economic meltdown? If you were gonna short, at what price point will you sell and at what range will you buy back? |
Boy, I told you not to come in hear with them smarts an shit. Dis place is for porn pics, and thievery.
http://bootybone.com/gfy/5sub-yoshi.jpg oh, and I say if you're not in GOOG by now, it's too late for you. |
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i bet it drops 30-50 pts in the next 6 months
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Google outperformed expectations for the quarter (I think the numbers were just released Thursday). I would not doubt them... |
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FInd out when the next quarterly report is out.
Find out what the actual Quarterly is on the day it is reported. You prolly should know the answer when ya see it. I would hold for now though. THe recent report is good. |
Lol, shorting on Google.. :)
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one year behind, you should have shorted GOOG by the end of 07 in 600-700usd range when it was clear that US was going to recession.
I knew the "momo tech"(aapl, bidu, goog, etc.) will crash with coming financial crises hard too, but really didnt expect such hard landing for them. my bottom target for SP is around 600 sometimes this year, so I am going on the shoppin spree around those levels. |
I would suspect
"Shorting Google stock -- act of stupidity or genius?" it is neither, it is just good business. But you have to keep your pulse on the factors that lead to your decision to short it.
Advertising Slowdown --------------------- The current economic situation finds consumers without the currency required to consume. As such advertising becomes a tool to maintain brands, but not so much to drive commerce and sales. Depends on Bailout --------------------- The current bailout has a lot to do with getting consumers the currency required for commerce. If the target of the bailout is BS programs and for beating dead corporate horses any increase in consumption will be slow and drawn out. If, on the other hand, the bailout puts immediate cash in consumers in the form of tax cuts or substantial rebates you will see a spike in consumption, with a decline immediately following. Blood Sucking Scavenger Parasites Advertise too ----------------------------------------------- The objective in this economic climate is survival with growth limited to blood sucking scavengers we euphemistically refer to a lawyers. Firms that handle foreclosures, bankruptcies, and liquidations would certainly do well to advertise. For Google however this means the increase in advertising by this segment will not make up for the loss in others. But, Google is well funded and is well poised to be one of the survivors. Shorting a single company is not sustainable ------------------------------------------ Be on the lookout for when the economy turns the corner. Every time another web company goes under, it bodes well for those that remain. Less supply in good ad space helps prices stabilize if not increase for the survivors. Statement to ward off the Bloodsucking parasites ------------------------------------------------- The information above is not to be construed as anything but the mindless blabber of a fucking lunatic. Any move to utilize this information for anything other than entertainment purposes means the person who engages in such foolishness is more fucked up than the author. Stupidity on behalf of the person of the first part, does not constitute a liability on behalf of the person of the second part. |
Did you happen to see the report on CNBC stating that alot of traditional media outlets are hurting becasue companies are starting to move their advertising dollars towards web advertising and web lead generation.
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I would wait with shorting the google stock by now till the final reports are out.
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Still going
"Google reported revenues of $5.70 billion for the quarter ended December 31, 2008, an increase of 18% compared to the fourth quarter of 2007 and an increase of 3% compared to the third quarter of 2008. In the fourth quarter of 2008, TAC totaled $1.48 billion, or 27% of advertising revenues."
Google isn't hurting for ad revenue and they have instituted significant cost cutting measures. (So much for not being 'evil' LOL) :2 cents: |
i see ad23n3e paying shit for clicks now
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I dont think that's as good of an investment as it might have been.
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Seems about fairly valued to me. Not a great opportunity either way IMO.
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I would short. This year is going to be wacky for online companies. You see what happen to Yahoo i beleive Google is next.
Here are other stocks i recommend ALD, CIT, SAY, XL, GNW, HIG, ACAS :) |
So did you short it? You are down about 10% if so.... LOL
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