GOOG popping up after earnings is beyond shocking to me, but then again, I don't think many people still realize the economic impact of Covid that is NOT reflected in Q1....
The majority of Google's revenue comes from advertising. (33.8b/n of its 41.1b/n). Advertising revenue got (and still is) getting crushed. The problem with Q1 is....advertising didn't start getting crushed until mid March when everything was getting shutdown. 2 weeks out of the roughly 13 weeks in the quarter were affected by crushed revenue. It's easy to cover up 2 weeks of bad revenues if the previous 11 were above expectations.
Businesses aren't going to spend money on advertising if they aren't open...Even when the re-opening does occur, can you expect them to spend at the same rate in the interim future? How can Universal pay for movie ads if they aren't creating any?
We can't predict when people will realize this....So for now, GOOGL is trading inside a channel, the upper side being a good short entry and lower side being a good long entry...until a break one way or the other occurs.
The majority of Google's revenue comes from advertising. (33.8b/n of its 41.1b/n). Advertising revenue got (and still is) getting crushed. The problem with Q1 is....advertising didn't start getting crushed until mid March when everything was getting shutdown. 2 weeks out of the roughly 13 weeks in the quarter were affected by crushed revenue. It's easy to cover up 2 weeks of bad revenues if the previous 11 were above expectations.
Businesses aren't going to spend money on advertising if they aren't open...Even when the re-opening does occur, can you expect them to spend at the same rate in the interim future? How can Universal pay for movie ads if they aren't creating any?
We can't predict when people will realize this....So for now, GOOGL is trading inside a channel, the upper side being a good short entry and lower side being a good long entry...until a break one way or the other occurs.
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