Google Likely To Be Positive To Close Following Gap Down On Earnings

Jul.20.07 | About: Alphabet Inc. (GOOG)

Hickey and Walters (Bespoke) submit: As of 7 am Eastern Time, shares of Google (NASDAQ:GOOG) are set to open nearly 7% lower after the company reported weaker than expected earnings due to increased spending on hiring and R&D.

Since the company came public in 2004, there have only been two occurrences where the stock gapped lower by more than 5%, which we highlight with red circles in the chart below. Following both prior lower opens, GOOG had positive returns from the open to the close with gains of over 3%.

goog gaps

goog performance on gaps