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Friday, April 4, 2014

$goog may break to 500

Its weak, and testing its trendline. Next stop 50sma on weekly.

eMarketer produced upward revisions to the global ditigal ad spend, which should allow Google's ad business to grow 15% yr-yr. (Assuming market share holds up.)

Regardless, the multiple is still too high given the size of the company.

It wild card is "other" revenue. This has seen huge growth, but the growth is not translated to the bottom line, reflected in the lower margins.

A normalized trailing multiple easily justifies a stock price of $500.

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