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Droids, Google + and a 12% Price Jump… oh MY!

Site Administrator | July 15, 2011

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If you were to Google "hottest stock" it might just redirect you back to their homepage based on yesterday's earnings.  It was an incredible week for Google as their earnings on Thursday prompted a 12% reaction in the stock to the upside. It is always amazing to sit back and think about the amount of wealth created (or possibly lost) in such a short period of time. That number could be good or bad depending what side the trader was on in the trade. That being said, we want to look at a few things that we feel the company is doing right and point a trend that is becoming more and more apparent in the tech space. Tech is no longer made up companies that either make computers, make software, are internet companies or gadget companies. Tech is made up of behemoths who want to be everything for everyone. Let's take a look at a few different companies:

Amazon.com:  Amazon started out as an online retailer primarily known for book sales. They have since added basically everything under the sun and made a huge technological leap forward with the Kindle which prompted them to begin focusing more and more on digital media such as books, mp3's, etc.

Apple:  Apple took the world by storm with the iPod and then did so even more with the iPhone and then the iPad. Much like the .com bubble when anything that had a .com on the end seemed like a good idea it seems that putting an "i" in front of a product name would do the same... maybe we should become the iTradingPub??? Since its computer days, AAPL is now a provider of smart phones, music, media, iTV.

Netflix:  Netflix also took the world by storm and the victim of the resulting storm of those little red envelopes ended up being Blockbuster. They are best suited to be the streaming media leader as they have several deals setup with Wii, Xbox 360 and also iTV. It seems they have the hardest road ahead at becoming a behemoth even though they have the market cornered on DVD/Streaming rental.  Netflix seems like a stock that you hate to buy but they keep killing the shorts.

Facebook:  Facebook has become so popular that now instead of competing with MySpace, people are saying, MySpace who? Companies are now advertising websites on commercials, companies advertise their facebook page, you can find ours at www.facebook.com/TradingPub (we would love to have you like us 🙂 ). Facebook has grown from a product developed primarily for college students to something that parents and grandparents are hooked on and that is how you take over the world... don't just focus on one sector but take each generation. Facebook has plans to add video chat, and as social media continues to grow facebook is definitely in the forefront. A very powerful thing to remember is that even though MSFT is seen as yesterday's innovator, there is some big money behind facebook

Google:  While AAPL is the flashiest of the companies mentioned and has incredibly high brand loyalty among its users, we feel GOOG has a great chance at truly putting everything together. Let's look at what they have done well and not so well: Search: People no longer say Search for this but "Google it". Even when yahoo was my homepage I would go to Google to find things. That translates into big money for advertising.

- Smartphone: Definitely not the innovator that AAPL was but they have caught up with the Android. It is an easy to use operating system and its users seem to be just as loyal. Even though Verizon offers the iPhone now you have to keep in mind that every Verizon phone salesman for the past few years was trained on why the Droid was better than the iPhone so we still expect Verizon to primarily sell Droids.

disclosure: I actually switched from the iPhone to the Droid this year

- Social Media: This is where GOOG has not done well until Google +. They tried with the Buzz and it did not take off but we feel that they have had a chance to regroup and do it right. A friend on facebook recently posted: " No Farmville or Mafia Wars or folks posting stupid stuff on my profile? See you at the cool kids' table..." in reference to Google +. They have the benefit of hindsight and learning from facebook's mistakes along with the fact that everyone and their brother has a Gmail account they have a great platform to launch with.  We actually feel the invite only idea will help them as people seek out invitations and as we all know, a referred client beats all others.  Only time will tell.

Based on all the components we really feel that GOOG has the best chance of putting it all together as their operating system works on several different platforms as opposed to AAPL which is focused on its own. While AAPL has the cool factor, Google is sort of just an understood as far as ease of use making it happen. If yesterday's earnings and today's price action are any indication of their ability to bring it all together go ahead and start the score at Google 1 - other guys 0.

We will be back for more live education next week and you can join us free by clicking on Pub Events.

Cheers,

The TradingPub

"Trade, Talk, Learn - Cheers to Success"

Follow us on Twitter and Facebook

If you were to Google "hottest stock" it might just redirect you back to their homepage based on yesterday's earnings.  It was an incredible week for Google as their earnings on Thursday prompted a 12% reaction in the stock to the upside. It is always amazing to sit back and think about the amount of wealth created (or possibly lost) in such a short period of time. That number could be good or bad depending what side the trader was on in the trade. That being said, we want to look at a few things that we feel the company is doing right and point a trend that is becoming more and more apparent in the tech space. Tech is no longer made up companies that either make computers, make software, are internet companies or gadget companies. Tech is made up of behemoths who want to be everything for everyone. Let's take a look at a few different companies:

Amazon.com:  Amazon started out as an online retailer primarily known for book sales. They have since added basically everything under the sun and made a huge technological leap forward with the Kindle which prompted them to begin focusing more and more on digital media such as books, mp3's, etc.

Apple:  Apple took the world by storm with the iPod and then did so even more with the iPhone and then the iPad. Much like the .com bubble when anything that had a .com on the end seemed like a good idea it seems that putting an "i" in front of a product name would do the same... maybe we should become the iTradingPub??? Since its computer days, AAPL is now a provider of smart phones, music, media, iTV.

Netflix:  Netflix also took the world by storm and the victim of the resulting storm of those little red envelopes ended up being Blockbuster. They are best suited to be the streaming media leader as they have several deals setup with Wii, Xbox 360 and also iTV. It seems they have the hardest road ahead at becoming a behemoth even though they have the market cornered on DVD/Streaming rental.  Netflix seems like a stock that you hate to buy but they keep killing the shorts.

Facebook:  Facebook has become so popular that now instead of competing with MySpace, people are saying, MySpace who? Companies are now advertising websites on commercials, companies advertise their facebook page, you can find ours at www.facebook.com/TradingPub (we would love to have you like us 🙂 ). Facebook has grown from a product developed primarily for college students to something that parents and grandparents are hooked on and that is how you take over the world... don't just focus on one sector but take each generation. Facebook has plans to add video chat, and as social media continues to grow facebook is definitely in the forefront. A very powerful thing to remember is that even though MSFT is seen as yesterday's innovator, there is some big money behind facebook

Google:  While AAPL is the flashiest of the companies mentioned and has incredibly high brand loyalty among its users, we feel GOOG has a great chance at truly putting everything together. Let's look at what they have done well and not so well: Search: People no longer say Search for this but "Google it". Even when yahoo was my homepage I would go to Google to find things. That translates into big money for advertising.

- Smartphone: Definitely not the innovator that AAPL was but they have caught up with the Android. It is an easy to use operating system and its users seem to be just as loyal. Even though Verizon offers the iPhone now you have to keep in mind that every Verizon phone salesman for the past few years was trained on why the Droid was better than the iPhone so we still expect Verizon to primarily sell Droids.

disclosure: I actually switched from the iPhone to the Droid this year

- Social Media: This is where GOOG has not done well until Google +. They tried with the Buzz and it did not take off but we feel that they have had a chance to regroup and do it right. A friend on facebook recently posted: " No Farmville or Mafia Wars or folks posting stupid stuff on my profile? See you at the cool kids' table..." in reference to Google +. They have the benefit of hindsight and learning from facebook's mistakes along with the fact that everyone and their brother has a Gmail account they have a great platform to launch with.  We actually feel the invite only idea will help them as people seek out invitations and as we all know, a referred client beats all others.  Only time will tell.

Based on all the components we really feel that GOOG has the best chance of putting it all together as their operating system works on several different platforms as opposed to AAPL which is focused on its own. While AAPL has the cool factor, Google is sort of just an understood as far as ease of use making it happen. If yesterday's earnings and today's price action are any indication of their ability to bring it all together go ahead and start the score at Google 1 - other guys 0.

We will be back for more live education next week and you can join us free by clicking on Pub Events.

Cheers,

The TradingPub

"Trade, Talk, Learn - Cheers to Success"

Follow us on Twitter and Facebook