GOOG 300 Shorts mortified

[The Kin]

Quote from stock777:

Yeah, you would have put 100k into this in 1978.

Touché.

 

[Rearden Metal]

Quote from PoundTheRock:

I disagree. New techs are Roman candles now, exploding on ever-shorter growth cycles. Already, the GOOG targets are based on unsustainable growth acceleration. Maybe not this quarter, but the stock will get cut in half on disappointing earnings within the year. GOOG doesn't have a stranglehold on either platform or product as MSFT did. Ad rates are coming down, search engine competition is firming, and this economic cycle is winding down.

Still, no reason to sell just yet, until it gaps down 40 points like BRCM in the good old days and then proceeds to lose another 200.

Exactly! People don't like to think about how the forward P/E is over 40. When search becomes a mature industry (As every industry eventually does), the P/E naturally gravitates toward 25. GOOG will need a hell of alot of growth to compensate for that.

That said, I'm currently LONG GOOG! (Just a day/swing trade.)