Investors are not very excited about Google (NASDAQ: GOOG ) (NASDAQ: GOOGL )
stock lately: Shares of the search powerhouse have fallen by 13% from
their highs of the year, as the company delivered disappointing results
for the last quarter and investors are becoming increasingly worried
about the competitive risk that Facebook (NASDAQ: FB ) represents.
On the other hand, Google is still a rock-solid player in the much
promising online advertising industry, and current valuation looks like
an attractive entry point in such a profitable growth company.
The challenges
The online advertising industry
is inherently dynamic, and it's gone through important changes over the
last several years. The mobile computing revolution is offering enormous
potential for growth, as global consumers are spending an increasing
amount of their time online via multiple screens. However, growing
supply is having a negative impact on ad prices, which is a negative
factor for Google. (more)
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With stocks and oil rallying, today King World News is pleased to feature a key chart that helps to explain why the volatility in the stock market has increased so dramatically. This piece also covers Russia’s troubles as well as what is happening in the crude oil markets.
Here is the Investors Intelligence report along with the all-important sentiment chart: The DJ and S&P 500 fell more than 3% last week while the NASDAQ and Russell 2000 lost 2%. Losses continued Monday as crude oil fell to $55/bbl. The US recovery remains strong but Russia moved to the forefront of troubled economies around the world. Many of our market indicators retreated with the averages and advisors continued to shift away from bullish stances. So far their worries are short term with mentions of the traditional seasonal strength between Christmas and New Years Day.
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