Shorting Google

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.


  1. Last trade after-hours at $210.35 … it’s fun to make vague guesses about the stock’s direction, but what columnist is willing to put his money where his mouth is?

  2. A stock like Google makes me thankful I do not run so much money that I have to have an educated opinion on how to trade it. Google is a pitch I would very gladly watch go by.

  3. Tried out MSN search yesterday. Not impressed so far. Looks like they tried to dumb down the interface for the masses.
    Will be curious what others think.

  4. Although i haven’t enjoyed the after eps pop;
    i did make decent $ trading goog for the 3 days prior to eps!!
    ** i make quite ok $ in this bad January

  5. Wow…shorting google. Only for the couraged!

  6. Why short this stock? You’re taking on too much risk. If you want to play the FEB 14 lockup expiration, you should buy the February puts. Greater return if the stock tanks. Less money at risk if the stock just keeps going up.