Inelasticity in GOOG Stock
It was my original hypothesis that GOOG stock would have a certain elastic rebound from the $370 low in late January when they released their Q4 numbers, but a quick glance at their current stock chart on Yahoo shows this is clearly not true:
The bright red line shows the fall after their earnings report, and the light line shows their recovery to date. Immediately after the drop we see some kind of rebound, but not a major one, and not a rally. Wouldn’t people say, “Wow, it’s lower now, let me buy?” Clearly not. Consumers are driven by a wariness at the stock’s artificially high price. I hope the Google major shareholders get out now before it continues to fall. My advice? Try short selling!
This entry was posted on Thursday, March 9th, 2006 at 5:35 pm and is tagged with elastic rebound, earnings report, google, stock chart, wariness, red line, hypothesis, shareholders, rally, glance, consumers, yahoo. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback.
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4/22/2007 at 11:17 pm
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