If you are wondering when is a good time to buy Google stock (GOOG) you need to ask yourself if you’re looking for an investment or a trade as the answers vary drastically.
Google as a Long-Term Investment
As a long-term investor, you should not really be concerned with the stock price at the moment. If you have done your due diligence, believe where Google is headed as a company and believe they have a clear path to future growth, now is a good time to buy. However, current stock price does calculate into the P/E ratio and valuation so depending on what your consider risky, value, or undervalued, you’d have to make that call and pull the trigger.
Google is More Than a Search Engine
When thinking about Google as a long-term investment, we need to realize they are way more than just a search engine. Google has a strong vision for the use of technology in other industries – namely healthcare. I’m looking for Google to completely disrupt the healthcare industry in the next 5-10 years and would love to be there for the party as a shareholder. If you also believe this to be true, picking up a few shares of Google right now with a 5-10 year horizon would not be a bad move.
— Daniel Ernst (@danielhsqr) November 11, 2014
Google as a Short-Term Trade
For those of us looking for a trade, a good time to buy Google stock would be, we think, around $520. Whether or not it hits those levels is yet to be seen, but at FinancialBrawn.com, we have an alert set on GOOG @ $520. We believe at those levels, Google would be very undervalued based on its revenues and future growth potential. We also feel at the $520 level we will be able to see double digit returns in the next calendar year.
— CNBC's Fast Money (@CNBCFastMoney) November 5, 2014