You might get sick and tired with me for being so obsessed about Apple Inc. and Google Inc. Forgive me but somehow I couldn’t think of any other technology stocks that grow as fast as these two mean machines. Contrary to the basic rule of fundamental investing that says you shouldn’t invest in stocks that have very high P/E, there’s exception to the fast growing stocks such as Apple and Google.

Shares of Google Inc. topped $675 for the first time Tuesday, nearly one week after the company reported strong third-quarter results. The shares reached as high as $677.60 during afternoon trading session, before closed at $675.77, a gain of nearly 4%. The stock began to climb after 2:00pm EST. So what could cause the sudden jump? Rumors had it that it’s all boils down to the big day on Wednesday.

Google Inc. (Nasdaq: GOOG, stock) is set to host an Analyst Day meeting on Wednesday, October 24, 2007 in Mountain View, California. The presentations that everyone is waiting for are scheduled to begin at 10:00 a.m. Pacific Time (1:00 p.m. Eastern Time) and conclude by 2:30 p.m. Pacific Time (5:30 p.m. Eastern Time). As the saying goes – when the internet search giant speaks, all of Wall Street listens. There could be some surprises which among others the announcement of Google’s Phone.

Google’s stock was partly boasted by the news that Google and television ratings company Nielsen will announce a multi-year deal on Wednesday to provide demographic data to Google’s system for selling television advertising. Google will combine the data it receives from television set top-boxes with information that Nielsen, the dominant TV ratings company in the United States, provides on viewers by gender and age.
Google’s TV Ads system currently has access to about 14 million U.S. homes through agreements with satellite television operator EchoStar Communications Corp. and local cable provider Astound Broadband. Google CEO Eric Schmidt had hinted the estimated $70 billion U.S. television market as an opportunity that “looks like it is going to grow very quickly.”

So, I guess I’ll have to wait for a while more before I can post my profit on Google Inc. since the trend is still bullish. If you noticed my paper gain (my GOOG Nov 570 Call is still open) from the screenshot above, it’s my new record in terms of percentage gain – 315 percent profit. Yeah, call me greedy, crazy or whatever but I’m competing against myself on this trade.

On the other hand, Apple Inc. seems to stabilize above $185 level but traded below at $183.99 during after-hours trading. If you haven’t diversified into technology stocks then you should seriously consider Apple or Google’s stock or options in your portfolio – wait for weakness before jumping in. At this moment, it’s “wait and see” strategy for me.

Other Articles That May Interest You …

• Knight Apple Saves the Day and the Tech-Stocks
• Bad News for You and Good News for Me
• Change in plan for Google, going for “Top Greed”
• Google and Apple stocks, my money making machine

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October 24th, 2007 by financetwitter

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