Just when Google seemed to be stuck in the mud, the AdMob deal was approved by the FTC (last week) and growth prospects were fueled. Now, GOOG is prepared to buy back roughly 1.5 million shares as part of the process of buying out AdMob. In other words, Google has picked up the top mobile ad company on Earth (the same one Apple thought it had its paws on).
Catalyst. Big-time catalyst.
Google also believes shares are cheap below 500, basically.
Long-suffering GOOG shareholders can take a deep breath of relief here. If the market calms down and returns to fundamental perspective (yes, I'm laughing on the inside, too), GOOG will be one of its leaders. Shares opened at 469 last Friday, before the FTC decision was announced. GOOG closed today at 484.86 and is now 490.46 in afterhours trading. Shares are well below the 50-day moving average (535.43) and 200 MA (539.71).
Noteworthy that through this week's tumult, GOOG has held that 469 floor thanks to the AdMob deal. Android and AdMob have turned out to be the pinnacle points for GOOG in the near term. It's not necessarily GOOG vs. AAPL. Both will win. I prefer AAPL, but GOOG will make traders and investors money. Finally.
GOOG's new growth = a first-time chart here
5-day chart (15-minute bars)
GOOG vs. AAPL
5-day chart (15-minute bars)
Hammer time! Hammers are known to lie, but at this point in the trend, a hammer can be a tell of directional reversal.
GOOG's weekly chart has a superb hammer forming this week
2-year chart (weekly)
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