It’s very easy to feel sorry for Google (NASDAQ:GOOG) shareholders recently. If you were to compare the fortunes of Google shareholders to shareholders of Apple (NASDAQ:AAPL) and Facebook, there’s no comparison. It’s a complete blowout. Apple has broken out like gang busters. Facebook has appreciated steadily.
Google, on the other hand, which is making billions and billions of dollars every single year, can’t seem to get out of a tight trading range it’s in. It would make some progress then all of a sudden it would reverse that progress. It seems like there’s some sort of stock market tractor beam holding this stock down.
As I’ve mentioned earlier, Google, if you strip it down to the basics, is an advertising company. Its fortunes rise and fall based on the overall global economy. When times are good and there are a lot of advertisers putting a lot of money on the table, Google tends to rise.
However, it’s also a tech stock. So for the longest time, a lot of the explosive growth and volatility of tech stocks apply to Google. Maybe Google is maturing or people are seeing right through the hype regarding Google. But whatever it is, Google stock has been lagging compared to other tech stocks like Apple and Facebook.
Interestingly enough, Cowen and Company’s David Seaburg says that this stock is undervalued. The company he works for, Cowen, recently upgraded Google’s price target to $681 per share. This represents a 20% appreciation from its current price.
Will this projection pan out? Well, Seaburg is basing his rosy projections on the fact that Google has some serious products, and its applications are among the top ten best performers on the planet. Would this be enough to translate to a breakout stock performance? Only time will tell.