Google (GOOG) had results last quarter that were sooo much better than most anyone expected. Of course only a quarter earlier results were disappointing. What do I make of this?
Don’t depend on Google
GOOG is on my radar, but I don’t trust the stock. This one-year chart is sick looking considering GOOG is around its 52-week high. From January through August of 2010 the stock just nibbled away at portfolio values.
Then out of the blue Google puts our a great quarter and we are all supposed to bow-down. I don’t want to get all excited and buy in again only to have a repeat performance. Doesn’t it look like GOOG’s one-year price action could be repeated again in the next twelve months?
Estimates Aren’t Great
Also, Estimates don’t look great considering the “great news” the company put out when it reported earnings. Here is GOOG’s Earnings Table. The next four quarters profit growth reads 18%, 11%, 21% and then 9%. That’s not exactly impressive — especially when I can’t depend on the stock.
I’ll keep GOOG on my radar for now.
