The company Google, or Alphabet Inc., as it is now known as is one of the largest conglomerates and tech corporations in the world. Naturally, their shares are some of the best-performing ones in the market. The company itself posted yearly profits of over 110 billion dollars last year. They also recently crossed 810 billion dollars in market capitalization and are closing in on a trillion dollars.
Any smart investor knows that putting your money in Google is a good idea. The earnings date for this year is not out yet, but it is expected to be around the 25th of October. This estimation is derived from previous fiscal dates, and if you happen to have the GOOG stock in your watch list or portfolio, you will get a reminder about the confirmation of the dates.
This prediction of dates and the movement of the stock are called PMAEA or Predictions Move after Earning Announcement. The prediction is supposed to give you an accurate analysis on how the stocks are going to move in the market on numerous factors. A majority of these factors involve patterns from the past and how the earnings date for Google announcement affected the price of the stock.
What do you need to calculate the PMAEA?
In order to get an accurate figure, the experts take into account things such as historical price reaction post the announcement of the earnings result. Another factor is the company fundamentals and how they enforce their core values. Supply and demand options of the company are also evaluated thoroughly. Another key detail to keep in mind is the stock price reaction following earnings result of other peer companies in the same quarter.
The predicted move for GOOG is around 5%, which means that the strike price can be kept at 10%. The strike price is unlikely to touch at any point after the earnings day announcement. This is a short-term strategy and comes with almost no guarantees as to what can happen. Ideally, the options on GOOG will expire worthlessly, but if it sticks to your strike price, it is an absolute must that you grab a hold of the stocks immediately.
Why should I put my focus on GOOG and its PMAEA?
Apart from the fact that Google or Alphabet Inc. is one of the biggest conglomerates in the world, investing in its stocks might be great for your portfolio. The company has been slightly down since the last earnings date at around 1.5%,while it is a nominal concern; the stocks are very strong and have grown in price every year since its inception.
Knowing the PMAEA three weeks in advance helps you set up a game plan, which allows you to trade for the stocks and add them to your portfolio. Doing this can help you stand out as a smart investor and one that takes advantage of market trends and predictions. In the long run, keeping tabs on such activities can help your portfolio and eventually get you maximum profits.