Google at $900: Time to Buy or Sell?

susie-gharib Google stock topped $900 on Wednesday and it is on the verge of becoming the first tech company to hit $1,000 a share. So the question for many investors is: time to buy or sell the stock?

Here are things to consider:

Strong financials.

Google reported a big jump in quarterly earnings and revenues in April. Analysts are forecasting strong earnings growth for 2013 and 2014. And the company has a huge cash hoard of $50 billion.

Innovation machine.

At its developer’s conference in San Francisco on Wednesday, Google unveiled a new music subscription service, “Google Play Music All Access.” For about $9, users can access all of Google’s music catalogues.

There’s also those “Google Glass” wearable computers in the form of eyeglasses that are getting popular and could become a mass-market must-have gadget. And of course, Google continues to dominate the search engine business. It commands more than 67 percent of the market and its closest competitor, Microsoft’s Bing, has only 16 percent.

Risks.

The stock has run up over the past few months, making it vulnerable for a sell off. Google could be over-owned. Remember what happened to Apple when its stock got up to a record $700?

Also, Google competes in markets where there is stiff competition. Whether it’s smartphones or tablets, Google is up against savvy competitors like Amazon, Apple and Microsoft.

Another concern is the health of Google co-founder and CEO Larry Page. He revealed on Tuesday that he has been diagnosed with vocal-cord paralysis. While it may not prevent him from running the company for now, some medical experts say in rare cases there is a risk of thyroid cancer.

So, is Google a bargain at $900 or is it time to sell and take profits? We’ll be discussing the pros and cons on Nightly Business Report Wednesday night. Let us know what you think, and what questions you’d like us to ask the experts.

This entry was posted in Investing, Technology, Voices. Bookmark the permalink.
  1. jeffery says:

    how come goole does not slip 2 or 3 for one so more of us can get in? the only way i can get in is a mutual fund right now.

Leave a Reply