Google is down 6.58% after hours on an earnings miss. Based on what we have seen other stocks do after earnings misses this year, it could drop to potentially double that amount by the end of tomorrow’s trading day.
If Google were to drop 14% from its current price, it would put the price close to the monthly 50 SMA, which I believe could be close to a bottom for this stock for the rest of the bear market.
Wall Street expected Google to be a haven stock during this bear market. Since we make money directly from Google advertising revenue, we knew Google stock was likely to drop and weren’t invested in it yet. However, given how strong a future Google has in AI, autonomous driving, and what is still an expanding internet, investors with a three-year time horizon can start buying Google if it drops to $90.
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