(Source: “Is Google Sitting on the Clock of eBay?”, The Wall Street Journal, August 25, C10)
I think this is a really important insight and one that I’ve been noting myself. It could mean that Google’s days as a highflying, momentum stock are coming to an end. At some point in the not too distant future, Google could start to trade more on fundamentals and valuation and be interesting to a different class of shareholders. When that happens, we could see a sharp drop in its share price as the fast money exits the stock.
Disclosure: Top Gun has no position in Google (GOOG) shares.