Google Inc. was one of the big earnings surprises last week. The company reported record earnings and the stock gaped up over 10% higher. Does it make sense to still buy Google at these levels?
II went back until 2004 when the company went public to find out what happened when Google gaped up in a similar fashion (> 10%). In every case, the stock moved higher for several weeks after the event:
Oct 2004
Apr 2005
Oct 2005
Oct 2006
Apr 2008
The monthly distribution of the gaps hints that earnings releases were the catalyst.
Conclusion: you might have an edge when buying Google after blowout earnings.
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A young and savvy, yet experienced and accomplished investments mogul since ‘01; Michael has amassed a fortune as a private self investor. Recently starting his own successful blog and turning it in to a corporation — MIV Investments Inc., a company offering advice to thousands of people worldwide and attracting contracts from various reputable sources. His articles and publications have been linked to Forbes, CNN Money, Reuters, Bloomberg, and many other top worldwide mainstream media sources.
Michael Vlaicu
