Saturday, July 6, 2019

Short Google?

If you have done this since Google was founded, you have lost a lot of money.

When I'm looking for stocks for the coming book "Best stocks as of 07/xx/2019" (xx should be around the end of the month of July), shorting Google is an idea to me but most likely I do not do it.

Here are my reasons to short:

1. Android is the only operating system for the phone after Apple. If they cannot license it to Huawei, they would lose a lot of profit. Microsoft had missed billions as they had a chance to make their Windows OS a standard operating system for the phone.

2. Huawei is coming out with their own OS tentatively named ArkOS. It is supposed to be 60% faster. Even with 30% faster, it would replace Android eventually. It runs on machine code instead of p-code and that is why it is so fast.

It is being beta test I guess. It looks like it is compatible with the apps to Android. If not, the consumers have to depend on Chinese censored apps such as Chinese-equivalent of Wikipedia. If so, it would not be appealing to sales outside China.

3. Zacks has a rating of Hold and Fidelity's Score is around 6 (just above average to me). The stock price has lost about 20% from the recent peak. 

Here are my reason not to short:

The past experiences of this rising stock prevents me from taking risk.

The reason I write this blog is I expect a possible downturn in July 25, the earnings announcement date. If I write this blog after this date, I could be accused of being a Monday quarterback.

I advise all beginner investors not to short any stock.

2 comments:

  1. May put a small short position on Google.

    ReplyDelete
  2. Glad I did not short Google. It is up 8%. It must be the momentum.

    ReplyDelete