On 9/12 we had a bullish post on GOOG and noted it’s time for out-performance was likely near given a strong technical and seasonal set-up (GOOG has only had one down October out of eight in its entire trading history and average gains for the month have been ~17%!).
Since 9/12 the stock is up ~900 bps as the SPX is up ~160 bps, generating material alpha in a short period of time.
We wanted to update that chart and reiterate our belief that the name remains compelling, as it was in our prior post, both technically and seasonally.
We also believe it is compelling fundamentally and would contend the market is in the early stages of re-evaluating the company’s competitive position in the smartphone market relative to AAPL’s.
Is $1,000 next up for GOOG?
Side note, but we would also contend YHOO will play an increasingly larger role in cozying up with AAPL, given GOOG and AAPL’s relative disdain for one another – AAPL kicked pre-loaded GOOG Maps & You Tube off the iPhone 5 and Steve Jobs’ commentary in his biography with Walter Isaacson about “going thermonuclear” on GOOG was just the tip of the incendiary iceberg when it came to how much he hated the search giant.