Wednesday, January 31, 2007

Google Earnings

Click on the chart for a larger view. Courtesy of the great Prophet.net


Tonight comes Google's earnings. Looking at the open interest and volume on the options profile, it appears more than a few people are betting big that earnings will be good. Historically, those people have been rewarded handsomely. I consider it gambling but alot of people make money at it. Or, so we are told. I wonder how many don't make money that the marketing machine doesn't tell us about. I'm sure it is the majority. If the stock moves higher off of earnings, I would guesstimate a target of about $570. Simple enough to calculate. Recent pattern high of about $515 minus recent pattern low of about $460 added to pattern high. That would also Google's market capitalization at around $180 billion. Whew! Moving close to 20x sales.

Update:
The Google bulls have alot of pushing to do if they are going to get a pay off for their options bets. So far in after hours trading, Google is down about seven bucks.
posted by TimingLogic at 9:24 AM