Google Stock At New Highs
As I type this, Google’s stock price is at $443.85.
The stock seems to know no limits. How much higher can this go?
Well, if history is any indication, then significantly higher. The stock market is littered with moves to the upside that defy logic. While a percentage move similar to Google’s for a penny stock is relatively easy - going to $0.08 to $0.40 happens, a move of this percentage magnitude for a triple digit priced stock is a different story altogether.
Let’s take a look at stock market history. A short journey back to the last century is all we need to see what can happen.
Recall Qualcomm, ticker symbol QCOM. For quite some time, the stock, for lack of a better reason, “languished". I know this because my mother - the non-technically inclinced mother of mine owned Qualcomm and was sitting patiently on this stock waited for a move to the upside.
The details allude me, but when she bought the stock, the price was in the $40 to $50 range (not accounting for subsequent stock splits). Again, if I recall correctly, the stock was in some kind of funk because of some patent / royalty issues over hanging. Don’t quote me on these details. But once those “issues” cleared up the stock started the big “runup".
When I say runup, I mean this, the stock went from less than $80 to a high greater than $800 is less than a year. In Peter Lynch parlance that’s a “10 bagger".
Anything is possible.
Now for a reality check, just because it is possible doesn’t mean it will happen. Come to think of it, just the opposite could easily happen.
I’ll give you example. Shortly after the great runup of 1999, the U.S. stock market turned decidedly downwards. I traded a stock in early 2000 - let’s protect the innocent here and just tell you that it was a four letter ticker symbol stock, ticker symbol begins with “J” and ends with “R". Bought the stock at ~$230 and sold it very soon after at approximately $240 for a quick ~$10 a share profit. That same stock had a price low in the subsequent years in the single digits. That’s right, the stock price dropped from a high of over $240 to a low of less than $10. I think the current price is near $20.
Anyways, my point is that GOOG could go higher. That’s all.
