According to my National Post column of a few weeks back, this is the time to short Google. The search company delivered earnings that beat analyst consensus by 10 cents, which is a lot, but not a-lot-a-lot, if you know what I mean. While I am still very fond of the company, it would surprise me very little to see the combination of post-release trading drift, nervousness about Microsoft’s just-outta-beta search tool, and Google shares coming out of lockup, lead to weakness in Google stock for a spell.
Okay, what are the odds that I’m right? Who knows. As I said on this site after the column appeared and Google’s stock obligingly sank into the low-$180s, that weakness could very well have been in response to the lockup, etc. — albeit a few weeks early. After all, the market is a discounting machine, so it is just as likely to do it now and get it over with. So, while I think Google could slide for a bit, the odds on a fun ride down are not as good as they were when I wrote that NP column a few weeks back.