Tuesday, June 22, 2010

Google Has Obstacles Ahead (Video & Stock Chart)


Google Inc.

Google Recovery At Risk

What will keep Google from returning to its all-time stock highs? NASDAQ analyst Steve Chalmers outlines the risks facing Google. GOOG daily stock chart is below video.

Three major risks are:

China Google pulled out of China and the world's largest internet market.

Smart Phone Competition Google has spent a lot of time and money on the Android smart phone, but now is facing "fierce competition" from Apple and the iPhone 4.

Ad Revenue Going Mobile Ad revenues are shifting from the desktop to mobile. Google is not as well positioned and not in as dominating position in mobile as in desktop.

Google Well Below 2010 Highs

Google closed today at 486.25, down -22.42% or -$140.50 from the 2010 YTD high of 626.75 on January 4. GOOG closed last week, Friday, June 18, at 500.03, regaining the 500 level. GOOG closed at 488.56 yesterday, Monday, June 21, to fall back below 500. The 480s have had a lot of price interaction since May 20 and even earlier at the Flash Crash on May 6.

GOOG broke down through the 25 day simple moving average yesterday, Monday, June 21. GOOG has been below the 50d, 100d, and 200d sma's for weeks.

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