Bad timing in Google (GOOG) as the news flow has been horrible and the company has been the center of drama with China. As I said in the weekly summary this was a name I was targeting to punt if it fell much farther and... it continues to falter. So away she goes. I continue to think this is a big overreaction to 1.5-2% of revenue being lost but obviously some of Google's out years growth potential is impacted by the Chinese situation. Either way, I don't like drama and the stock is at the center of a lot of drama.
I am taking a 4% loss on the position. This was another failed breakout, but due to specific news so I am ok with the premise of purcashing the stock; it looked to be in great shape prior to the announcement of the pullout.
Meanwhile Goldman threw Baidu.com (BIDU) a bone this AM and increased its price target to mid $600s from mid $500s. Why not $1000? Where is Henry Blodget when you need a serious upgrade? (only those of you from 1999 or earlier will get a laugh at that one)
- Goldman Sachs lifted its Baidu.com price target to $675 from $575, following Google's move to redirect its China site to its Hong Kong site. The broker, expecting the Hong Kong site to be at best slow if not unavailable, estimates that Baidu may capture between 33% and 75% of Google.cn traffic.