Facebook is Not Competing with Google
- Posted by Greg Harmon
- on September 24th, 2012
I saw several mentions Monday evening saying something like the money leaving Facebook, $FB, stock Monday was flowing directly into Google, $GOOG. I am not sure how you could measure that but decided to look a a ratio chart of the two to see what it tells. The Candlesticks are the ratio of Facebook to Google, the orange area the chart of Facebook and the cyan area the Google chart, all since Facebook went public. What does it tell you? For me it shows clearly that premise is not true. First the chart for Google has been in a clear uptrend since shortly after the Facebook IPO
and before it started falling. Second the Ratio chart shows that the movement in Facebook stock is totally overwhelming the impact that Google has on the ratio. The Ratio is identical to the Facebook chart. I have seen this before (Look at lululemon athletica, $LULU against McDonalds, $MCD), it is not uncommon. Facebook truly is just killing itself.
Dragonfly Capital Views Anniversary Celebration
For a limited time the Opportunity to join the Dragonfly Capital Views Premium Membership on an Annual basis is available for only $600.
This is 20% off of the standard annual subscription price and nearly 45% off of a rolling monthly membership! Don’t miss this limited opportunity! Sign up here.
Want to learn more about Dragonfly Capital Views?
If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
- Currency Discussion on FX Street
- Premium Earnings 4-17-14
- Enter the Pound
- Time to Sign Up for Netflix
- Premium Earnings 4-16-14
- Risk Rotation or Risk Off: Small Caps, Large Caps, and Foreign Risk
- Leaders Of The Pharmaceutical Pack
- Premium Earnings 4-15-14
- Gold over Silver
- Shopping For New Sunglasses…er, Food