Thinking of bottom fishing on Google down here but worried it might go lower still - any thoughts?
Best Answer
4085 points
EthanR answered 11 months ago …
I think any time one considers bottom fishing, there is always the chance that the stock goes lower. That goes without saying. After all, if you are bottom feeding, it's because the stock has performed poorly in recent weeks and months. However, it looks like GOOG is now trying to base around 300.
Recent support was seen at 250-260, but that's another 15% down from current level. I think we are going to see some more selling in the next week or two, so if you can pick up GOOG shares closer to 250-260, I think your downside risk will be somewhat reduced. Having said that, if GOOG does not hold support near 250-260, then you must either wait longer to buy, or if you have already bought, put in a stop loss order a little below that previous low (257 close, 247.30 intraday, set 11/21 and 11/24). Stockcharts.com has a bearish price objective of 252 on the point and figure chart.
Answers
2222 points
readytoretire answered 11 months ago …
As the king of search, it will do better than the other companies in that market. That said, it cannot escape the influence of the economy and the cutback in advertising. That said, I think it is fairly safe at this price, as long as you understand if the economy falls out of bed next year, it may have some weakness. Longer term, it is a definite buy.
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3963 points
MNSL answered 11 months ago …
Some say technology sector will lead the next Bull Run. If it is so companies such as Google, Baidu Com will benefit most. However software oriented stocks will underperform the market.
It has found companies overinvested in technology such as expensive software are finding difficult to survive in the current marker environment. Some companies are downsizing their staff and reducing investment in expensive softwares now. .
