Google’s earnings report was released last Thursday, and the announcement sealed the stocks longest winning streak of 2011.
Revenue rose 33%. Net profits rose 29%. Paid clicks increased 28%. “When I look back over the last quarter, the word that springs to mind is gangbusters”, according to CEO Larry Page.
Even in the face of a global economic slowdown, Google has seen increased demand for online advertising…the search business is somewhat resistant to slowing economic activity. And Google may take 76% of the U.S. search advertising market share this year, according to EMarketer.
Shares of Google have soared recently, and last week’s action resulted in a short-term buy signal. In spite of that, I would hold on adding a position. Shares are now entering overbought territory, so I would watch for a correction from the current level.