Last month I wrote that the risk-reward in shares of Google (NASDAQ:GOOG) looked extremely favorable. It just so happened that the stock bottomed two days later and has soared 57 points since. Technicians will likely be pleased to see that Google hit a new all-time high on Tuesday, breaking through a previous double-top.
Hopefully some readers took advantage of Google trading in the low 460's. If you did, where to from here? Well, I have not sold any of the positions I initiated when I wrote the last article. I think a P/E of 30 is very reasonable given Google's growth prospects. With 2008 earnings estimates north of $19 for the company, there is no reason to doubt that a price objective of $575-$580 is attainable in the intermediate term.
Disclosure: Author is long shares of Google at the time of writing.
GOOG 1-yr chart: