Google Inc (NASDAQ:GOOGL)’s recent slide has put into question the targets that the tech giant was expected to achieve by the end of this year and also in the next. On CNBC, Dan Nathan of ‘Fast Money’ expressed his concern where the new revisions will lead the company’s stock price to.
“I am just going to say one thing. This is when you start thinking about this out year estimates that analysts expect, high teens, earnings and sales growth and it is trading at a multiple below that, P/E growth below that, which is the first time in a long time. Are we about to see a Q4 miss, and a guide down for 2015?,” said Nathan.
Google Inc (NASDAQ:GOOGL) has recovered partially in the last two days in terms of stock price owing to the sheer bullish momentum that has been prevalent in the market, but the stock is still significantly down in the overall scheme of things.
The recent lowering of Google Inc (NASDAQ:GOOGL)’s price target from $670 to $600 by JP Morgan, despite maintenance of the ‘overweight’ rating is perhaps first of such actions, according to Nathan. Of course there is a chance that next time a rating cut could be on the cards too.
“[…] This one [Google Inc (NASDAQ:GOOGL)] is in full long correction mode. It is down about 20 percent from the all time highs made earlier this year. I mean this is a bit troubling. This is one of the largest market cap companies in the world here and this is the one that has been universally loved until the end of this year […],” said Nathan.
Google Inc (NASDAQ:GOOGL)’s needle ticked up a little by 1.61 percent. The stock was trading at $514, when the closing bell rang.
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