Since early January, Google (NASDAQ:GOOG) has been nothing more than a small trade here and there. The stock has largely been out out of play as other tech leaders have enjoyed big moves. But the tide is changing. The stock has undergone a gradual transformation since its from new, sexy momentum stock to a more methodical, established giant forced to find new ways to monetize its enormous scope of business.
From a value perspective, Google is very appealing right now given its success in monetizing search and YouTube, as well as its fast-growing market share in the smart phone space with its Android operating system. Whenever a company becomes a verb (“Google it”) you want to find opportunities to own the stock at a good value. Google also features a line-up of cloud applications that make it a virtual one stop shop, and greatly enhances its brand, including Gmail, Google News, Google Docs and Spreadsheets, Google Chrome browser, Google reader, Froogle and the neat Google Earth. Google is much more than search, and will continue to look for further avenues to expand and monetize its business.
Whenever a value story coincides with a technical set-up, we get extremely excited. We first put a in a buy on Google at 485 and it ran to 535. GOOG has now has held in well and I think a new cup and handle pattern is underway with a new buy above 536-538. The measured move is back towards 580-600. Buy tier one here at 530ish and add on a close above 536-538. The stock is very whippy so your stop needs to be at 515.
P.S. It wouldn’t hurt for Google to consider a stock split to allow more people to consider buying the stock. BIDU split their stock, and now it is at 1000 pre-adjusted.
