Simply speaking, the answer is no. Introduced nearly two years ago, Google (GOOG) has amazed investors with its phenomenal growth, increasing capital gains of lucky investors by nearly 300%. While 2006 has been a quiet and, even in some regards, negative year for the advertising and search engine giant, there is immense future for the company everyone wants a part of.
In terms of fundamentals, buy google accounts is exceptional. With margins growing at tremendous positive rates, and continuous positive surprise factor with its earnings, there is no reason to look elsewhere for a fixed income equity. Supporting excellent cash flow from its operating margins and revenue growth flowing in from its advertising business, Google looks to be the next Microsoft in future potential growth and could grow just based on its amazing fundamentals for years to come. As Microsoft and other competitors have lost a bit of an edge due to Google’s emergence, and potential economics of scale in foresight, Google will almost handily beat out most of its lower competitors over the next few years providing investors with excellent news regarding its numbers.
While the fundamentals are excellent, a few investors may be worried about the technical side of this company, and why shares have not increased over the past year. My assumptions would be that Google experienced such high growth rates during its first year and a half that it needed a hiatus for long investors allowing some of the shorting investors to gain some control. However, the slowdown appears to be at its end making this a perfect time to invest in Google with a future rally ahead. Looking at the stock more closely, during late 2004 Google had a period where it withheld a resistance level near 200.00, and a supporting level near 175.00. Such a period lasted in two intervals very similar to the situation occurring now. With higher levels of a support of 420.00 and a resistance of 380.00, conforming to the same set of guidelines as shown during late 2004, Google is just potentially weeks or even days away from beginning that rally to possibly 600-700 in one year’s time.
While some investors may argue that typically during a potential recession session, technology is not a wise decision buying wise, with Google’s potential monopoly in the near future, and continued expansion supporting its amazing fundamentals, economic events should have no implications for a company of Google’s magnitude. With excellent fundamentals and a beautiful technical situation, there is no reason not buy Google.