As a tech junkie and binary options trader, Google is one of my favorite companies to follow. The company satisfies my craving for top of the line technology while making waves in the market; it's like a match made in heaven. With that said, this week is going to be a big week for the stock; and unfortunately, I'm not expecting great things. This week, Google will be releasing its earnings report. However, there are some major red flags that tell me we're in for missed revenue and major downtrends. Here's what's going on…
Why I'm Not Expecting Great Things From Google Earnings
Google will be releasing its earnings report on April 23rd; and while I love the company, I'm really not expecting much good news this weeks. As mentioned above, there are a few red flags that tell me we're going to see missed revenue projections and downtrends in the stock upon the release of the report. They include…
- The Last Earnings Report – In the fourth fiscal quarter of 2014, Google missed revenue expectations. However, it wasn't a far miss, and the company was able to talk investors out of pushing the stock down. However, the problem is clearly one that's going to affect this report as well. The problem was the fact that the strong US dollar was harming sales abroad. As a result, less competition for clicks drove the value per click average down; ultimately leading to a revenue miss. The problem here is that since then, the US dollar has grown; far outpacing the values of many other currencies around the world. So, the affects on click value growth and foreign ad spending is most likely going to be bigger this quarter than it was in the last.
- Slowing Activity In The US – While Google had to struggle with foreign ad spending last quarter, they did well with US advertisers. Unfortunately, I don't think that's going to be the case in this report. The reality is that with economic conditions starting to slow in the United States spending is slowing for businesses and consumers all together. This means that businesses are probably going to be less likely to spend as much on Google ads; which will amount to a larger miss than we saw last quarter.
- This Will Most Likely Cause A Downtrend – While investors were able to shake off the last earnings report, I'm not sure that things are going to be the same this time around. The reality is that every company has an opportunity to miss here and there. However, if the report is a miss this time in a row, it will be two consecutive reports that led to upset investors. As a result, we'll most likely see investors push the value of the stock down.
As A Binary Options Trader, You'll Make Money Either Way
First off, I want everyone to remember that I can't see the future. The above is simply what I'm expecting based on my research. With that said, no matter where this thing goes, you as a binary options trader, have an opportunity to make some real money in the market. The reality is that if the report is what I'm expecting to see, we're going to see some pretty big downtrends; giving you the opportunity to bank on put options. However, if I'm incorrect and the report is positive, we'll most likely see strong uptrends; giving you the opportunity to see profits from call options!
Will You Be Trading The Trend?
Let us know in the comments below! Happy trading everyone!