Google’s stock has been hammered over the past two weeks and Henry Blodget blog posts have been in
the thick of the action. Last October when Google was on a bull run, Blodget had come out with a post about Google going to $2000. He had followed up with another post on November 27, where he did felt that a price target of $1000 was very plausible. However, his tone has become increasingly negative over the past two weeks.
Blodget identified a revenue miss warning in Google’s 10K on February 19, and quoted an entire paragraph to illustrate that Google talking revenue expectati
As it turned out only one sentence in that paragraph was new and he subsequently clarified that.
He followed it up with a post on February 22 about Google’s exposure to the recession based on an insider (who turned out to be a digital-ad industry insider). He was very suspicious of Google’s tweak to the AdWords algorithm in his posts on February 24 and 25. But he beat his own prolific output on February 26th.
February 26th was an eventful day.
The day started early (5:40AM) for Henry with a grumpy post about Google’s participation in the trans-Pacific cable. But he really hit the panic button with his post reporting the lower Comscore estimate of paid clicks at 7:16AM. He followed it up with a post at 10:58AM dismissive of analysts’ efforts to defend Google’s stock.
However a strange thing happened as the day wore on.
Google’s stock made a V shaped bottom at around $450. Blodget’s next post at 12:22PM highlighted the bullish call from RBC’ s Jordan Rohan.
There was a follow-up post confirming the reversal at 2:02PM which talked about the bargain Google was at 32x Future Cash Flow.
So do have we hit a near-term bottom on Google? The candle-stick today had the hammer formation on huge volume, which often signals a reversal.
A lot of instituti ons have also lightened up
on Google over the past few months and they may be looking to come in again.
And Blodget has also reversed….