I suggested it was a good moment to buy Google stocks late October. The tech giant just lost nearly 9% of its market value despite its solid quarterly report, due to a purely technical correction from somewhat overbought positions. As I was not ready to consider a lack in revenue growth from the cloud computing segment as a real reason behind a situational move down in Google stock prices, when this piece of its business structure showed 22% YoY compared to higher crowd's expectations. My idea was to bet on a quick recovery of the stock from a $125-127 area to above $140 at least. Artificial intelligence bots, as well as strong return from Google's search engine and YouTube formed a sound basis for more than three weeks of a gradual rebound as it happened to $138.70 at the market's close on November 16.
The distance covered by Google stock since late October is much longer than the rest of the path to my first target area. So, I feel reasonable to proceed with a phase of partial profit taking. Balancing a risk/reward ratio is an important thing in every trading strategy for not to miss your profit. This Friday, or maybe the start of the next week, looks to be a high time for this pleasant task. However, a new all-time peak on Microsoft share price in combination with an active engagement of both tech companies, Microsoft and Google in AI-related agiotage allows me to think that the ultimate target for Google stock is also higher than its historical levels. Therefore, I am planning to keep nearly one third of my current buy positions in Google for a longer-term investment horizon.