Goog

[capmac]

07:30 GOOG Google target raised to $330 at RBC (280.26 )

RBC raises their tgt to $330 from $280. Firm believes that the amount of media attention focused on GOOG is massive -- to the point of overkill -- which includes the articles that lampoon the analysts who favor investment in GOOG at these levels, making comparisons to the bubble years of 1999 and 2000. Firm notes that the profitability of GOOG is driving the share price, not the multiple, which remains quite reasonable, and presents a very different story than in past years. Firm acknowledges that GOOG's current $80 bln mkt cap is massive, but they also believe that its earnings trajectory is unparalleled. Firm raises their Q2 ests and initiates 2007 EPS est of $9.

 

[snooptrader]

Quote from SteveD:

This is a perfect example of how the technical traders get killed with a stock like GOOG.

I have to disagree on your use of the term "technical traders". Anybody telling you he is shorting GOOG for technical reasons is either full of BS, or does not understand TA (probably the most likely scenario).

IMO, there has not been a reason to short GOOG as of yet. The only play has been long.

 

[ElCubano]

Quote from snooptrader:

I have to disagree on your use of the term "technical traders". Anybody telling you he is shorting GOOG for technical reasons is either full of BS, or does not understand TA (probably the most likely scenario).

IMO, there has not been a reason to short GOOG as of yet. The only play has been long.

If goog is at $80-$100 within the next year...people will be telling us 1000 reasons why they went short...

And not every dot.com company that was a victim of the bubble didn't make money..some did..CSCO made money got hammered...msft made money got nailed...pmcs made money got annihilated....they made money and got beat up like a red headed step child..

im with kicking on this one...just need to hold pain and look further than one week...

 

[dgabriel]

Quote from ElCubano:

If goog is at $80-$100 within the next year...people will be telling us 1000 reasons why they went short...

And not every dot.com company that was a victim of the bubble didn't make money..some did..CSCO made money got hammered...msft made money got nailed...pmcs made money got annihilated....they made money and got beat up like a red headed step child..

im with kicking on this one...just need to hold pain and look further than one week...

GOOG will go down, it is only a matter of time. However, the factor here is time, and we don't and can't know when that time will come. Market is due for a pullback imminently, but GOOG's run may have 3 months left in it.

 

[capmac]

11:31 GOOG Google shares -- possible reasons for share spike (290.77 +10.51)

We're hearing that GOOG shares spiked as much as 11 points higher this morning partially because some of the momentum traders in Apple (AAPL) have moved over to GOOG. One other possible contributor is pure hype following a press release by PriceWaterhouseCoopers that says Q1 Internet ad revenue in the industry rose 26% to $2.8 bln, marking the highest reported quarter in 9 consecutive growth quarters.

 

[ElCubano]

Quote from capmac:

11:31 GOOG Google shares -- possible reasons for share spike (290.77 +10.51)

We're hearing that GOOG shares spiked as much as 11 points higher this morning partially because some of the momentum traders in Apple (AAPL) have moved over to GOOG. One other possible contributor is pure hype following a press release by PriceWaterhouseCoopers that says Q1 Internet ad revenue in the industry rose 26% to $2.8 bln, marking the highest reported quarter in 9 consecutive growth quarters.

internet ad rev is 2.8billion for the quarter and GOOG mkt cap is 80 billion... :eek:



12:14 SHOP Shopping.com trades above EBay offer price (21.20 +0.41)

We note that SHOP is now trading at $21.20 a share, above EBAY's $21 offer price for the company. We can't think of any reason why SHOP would trade above $21 unless some traders out there believed some other company might have a competitive offer. We note that just prior to EBAY's offer, there had been rumors that CNET was interested in buying SHOP. We asked Mark May, Needham's GOOG analyst, what he thought of the situation. He agreed that there's no reason why SHOP would trade above the offer price, unless someone thought there was another potential bidder. He said he hasn't heard anything specific, but that he believes there are only two companies other than EBAY with the means, and the possible desire to own SHOP -- Google (GOOG) and Time Warner's (TWX) AOL. May notes that Microsoft (MSFT) has a history of building its online business itself, and that it's unlikely to stray from that strategy, and that CNET doesn't seem to have the financial means to complete a deal for SHOP.

 

[Aaron]

Quote from ElCubano:

We note that SHOP is now trading at $21.20 a share, above EBAY's $21 offer price for the company. We can't think of any reason why SHOP would trade above $21 unless some traders out there believed some other company might have a competitive offer.

Part of the problem is that SHOP is not available for borrowing (at least not at Interactive Brokers) right now.

Aaron Schindler
Schindler Trading

 

[straddler]

I heard that a hedge fund trader was shorting this puppy without his bosses approval. When they finally realized the rather large position, he started putting upside pressure by covering it in the market. That could be one reason for today's action.

 

[capmac]

There is a rumor that GOOG may join the S&P 500 when the index makes it's index changes after the bell this Thursday.

 

[AAAintheBeltway]

Quote from ElCubano:

internet ad rev is 2.8billion for the quarter and GOOG mkt cap is 80 billion... :eek:



12:14 SHOP Shopping.com trades above EBay offer price (21.20 +0.41)

We note that SHOP is now trading at $21.20 a share, above EBAY's $21 offer price for the company. We can't think of any reason why SHOP would trade above $21 unless some traders out there believed some other company might have a competitive offer. We note that just prior to EBAY's offer, there had been rumors that CNET was interested in buying SHOP. We asked Mark May, Needham's GOOG analyst, what he thought of the situation. He agreed that there's no reason why SHOP would trade above the offer price, unless someone thought there was another potential bidder. He said he hasn't heard anything specific, but that he believes there are only two companies other than EBAY with the means, and the possible desire to own SHOP -- Google (GOOG) and Time Warner's (TWX) AOL. May notes that Microsoft (MSFT) has a history of building its online business itself, and that it's unlikely to stray from that strategy, and that CNET doesn't seem to have the financial means to complete a deal for SHOP.

I believe there is a pretty good case to be made that EBAY is getting SHOP on the cheap. AMZN is the obvious alternative buyer, as they are vulnerable to comparison sites and also exposed to rapidly rising costs for paid search. I wouldn't rule out IACI either, as SHOP would be a good fit for them.