Google Stock Quote

I’m not here to pass judgment, just my thoughts on what I see. And don’t mistake this for advice, that could cause us all a bunch of trouble.

Here’s the facts, Google earned $3.18 per share, which is up more than 60% for the comparable quarter a year ago. Also, earnings per share exceeded analysts expectations by $0.38.

Google stock is up more than $17 as of this writing at 11:18AM on Friday April 20th, 2007. The stock gapped up on the news and has been in a relatively narrow trading range so far today, about a $5 trading range. While this is all fine and dandy let me just voice my concerns on this.

This is a news driven gap, i.e. - the stock is up on a better than expected earnings announcement. Here’s a stock that exceeded expectations and is up 3.5% for the day. My experience has been that these type of news driven gaps frequently get filled. In other words, that gap that exists from the current price action around $490 down to $480ish might just get filled. The fact that the stock is not running higher on a better than expected report gives me pause. Still, the day is young and a lot can happen in the next 4+ hours. For short term traders that loaded up on the recent bullish trading setups mentioned previously, this is a field day for unloading.

I’ll close my mouth for now and watch the price action.