What we have to consider when trading Google Stock?
Google is #5 word’s most valuable brand according to Forbes listing and #47 among the most innovative companies.
The easiest way for profiting from trading Google stocks is by purchasing call / put options at a binary broker.
Google Inc. generates revenue primarily from Google AdWords – online advertising platform. Each day millions of webmasters spend bunch of dollars aiming to boost their websites up in the search rankings. Google AdSense program on the other hand help webmasters in making profits by opening ads space for the highest paying ads.
Our strategy for trading Google Inc.
We are doing market analysis by looking on the quarterly earnings reports and following the important market news. It is critical to understand how the market news affect the charts to be able to predict future price directions.
Google Inc. Market Analysis
First you need to take a look on the last quarterly earnings report and to compare it with the previous one and the one in the year-ago quarter. Thus you will have an idea about how exactly Google Inc. recently performs in comparison with the past.
Google Inc. Q1 2014 Results (31 March 2014)
The company reported consolidated revenues of $15.42 billion for the quarter with 19% increase compared to the first quarter of 2013.
The GAAP operating income in Q1 2014 was announced to be $4.12 billion which is 27% of revenues – compared to Q1 2013: $3.75 billion and 29% of revenues.
GAAP EPS numbers: $5.04 on 685 million diluted shares outstanding, compared to $4.97 in 2013 on 673 diluted shares outstanding.
Important news in 2014
In January Google acquired Nest Labs Inc. for $3.2 billion in cash which resulted in constant grow on the daily charts till end of February.
Lenovo acquired Motorola Mobility from Google on 29th of January 2014 which news didn’t affected the recent uptrend which continued till 26th of February when Google reached its highest level of $614 for the period.
Google Inc. Technical Analysis
We are analyzing the situation on the chart after the quarterly earnings report seeing a big drop from $585 to $520.
Google Inc. Chart on 17th of April 2014
We have a previously marked double bottom around $527 - 527.30 area which is still serving as support as demonstrated by the hourly rebound from the level on April 16th. At the same time the low at $518.60 serves as a second solid level to provide buying support as it is the current monthly low. Any break below the lines would favor a price decline.
On the upside we have a declining trend line which is coming to the around $550-555 area, so any break above would be favoring to buy daily calls.
You have to follow close all information coming from Google and do your own conclusions on the market situation. After you need to identify key levels of support and resistance which could be used as solid base on your opinions.