Saturday, January 22, 2011

The 800 Dollar Gorilla

Anyone who doesn't sense the hand of that jokester, Yahweh, in the actions of equity traders has only to mark the recent fortunes of AAPL and GOOG, post-earnings. Both reports were stellar and both contained gotchas, regarding the leadership of the companies: Jobs is sick again, and Larry Page is replacing Eric Schmidt.

Both stocks tanked when the stories came out, but AAPL recovered quickly since, in the firmament of traders, Jobs is next to Godliness. GOOG, on the other hand, dithered around after hours, but then, the next day, sank like a stone because the stupid traders think that Larry and Sergey are a couple of goof balls - they envision Larry, instituting four days a week for employees' personal projects and one for the company; and they envision Sergey, breaking off relations with the entire world, because no country is pure enough for him. Never mind that the big analysts were unanimous in their praise of Page and Brin, taking over from Schmidt, and several, for the first time, issued price targets of $800 for the big gorilla. It's the stupid traders whom Yahweh selects for his jests.

So we have GOOG back at $612, and apparently heading lower, after I just said that we didn't need to see GOOG at $600, ever again. My bad. However, with Yahweh, it's never over - GOOG may well turn around at $601 and head straight for Hallelujah Land.

1 comment:

Larry Blumen said...

It's tempting to claim that Yahweh heard my prayer that GOOG turn around at $601 and then head north again, as that is exactly what has happened, yesterday and, so far, today.

However, as an earnest petitioner of Yahweh on GOOG's behalf, over the years, I have to acknowledge that we may not have heard the punch line yet. I'm not going to claim victory until I see the gates of Hallelujah Land.