GOOG is a $1,000 stock. Seems that’s starting to sound redundant. Despite a well-chronicled “collapse” on July 19th, the stock has managed to consolidate at and above the $850 level. On September 20th we answered a reader’s question about GOOG noting the Support level around $850. GOOG just exploded out of its Congestion Zone to blast through the $1,000 mark.
At the time of GOOG’s big drop, we wrote about Google’s performance that day relative to that of Microsoft. While MSFT has staged an impressive comeback of its own by bouncing off a significant Support Level,
GOOG continues to outperform the former market leader. Until the middle of last year, GOOG consistently outperformed MSFT, but much more modestly. Last July, the performance spread began to grow. With Friday’s performance, the spread has gone parabolic.
We’re not suggesting that GOOG and MSFT are the same… nor are we suggesting that the performance relationship will revert. We did however, think the relationship interesting and worth noting.