Google Is a Sleeper

 | Sep 13, 2013 | 10:50 AM EDT  | Comments
  • Comment
  • Print Print
  • Print
Stock quotes in this article:

goog

,

FB

,

yhoo

What ever happened to Google (GOOG)? In all of the commotion about Twitter and the rip-roaring stock that is Facebook (FB), have you noticed that Google does nothing? Yahoo! (YHOO) has so much buzz. Buzzfeed has more buzz. What the heck is going on here?

My theory is simple: Google's last quarter was simply not as good as Facebook's, and Google seems to have fallen behind in mobile. It is almost as if people are saying that Google is the old-fashioned way to play the Internet, because it is all about search and not social, or, because of last quarter, mobile.

Google wasn't ready in the last quarter to talk about all of its mobile work and how it is also becoming the ultimate gatekeeper for all things advertising for mainstream advertisers. It is true that Google's social initiatives haven't taken off yet. But the idea that this company, which has so much that it can monetize, including Android and YouTube, has lost its edge is preposterous. The idea that we have one of those "Twitter's hot, Google's not" dichotomies is ludicrous.

Go back and read that last conference call. Notice how Google was talking about how it was about to have a huge breakout in mobile and in advertising for mobile. Now think about what happened when Facebook got it together.

I think Google is going to be a coiled spring. I like the November 860 with a 49 top. Gives you the quarter. Allows you to short some calls against it as the right point. Just a very compelling situation. 

Columnist Conversations

The spread between the implied volatilities of two month 25 delta puts and calls in IWM is near the highest le...
Let me be clear--beef and pork are still too high. Pork is about a virus. There are issues involving the droug...
This weeks Pick of the Week from me is Herbalife (HLF) for a quick dead-cat-bounce play after the last earning...
Jacobs Engineering (JEC) touched a new 52-week low making the shares a tempting buy today. It also looks good ...

BEST IDEAS

REAL MONEY'S BEST IDEAS

Columnist Tweets

BROKERAGE PARTNERS

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.


TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.