How to Play the Google Roller Coaster

Peer Performance

When I compare Google to other social media sites with a pay-per-click revenue monetization, I see that during the past six months, Google's price was up 13%, while Facebook (FB) was up 65%, LinkedIn (LNKD) was up 16% and Biadu (BIDU) was down 16%.

Facebook: Financial strength B+; not rated by TheStreet; revenue projected to be up 30.80% next year and earnings to increase annually 29.48% for the next five years.

LinkedIn: Financial strength B++; rated D by TheStreet; revenue projected to be up 52.00% next year and earnings estimated to increase annually by 60.96% for the next five years.

Biadu: Financial strength A; rated B- by TheStreet; revenue predicted to be up 35.40% next year and earnings expected to increase annually by 34.81% for the next five years.

Conclusion

Google is a hard stock to predict. While the overall price trend as measured by the 100-day moving average keeps increasing, analysts and individual investors have been way off on their expectations. My advice is to chart the stock yourself and get your signals from the moving averages and turtle channels. During the past six months, the 20-day moving average has signaled tops and supports that were later confirmed by the turtle channels:

At the time of publication the author had no positions in the stocks mentioned.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.

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