Google Makes New Highs

My Stock of the Day is Google (GOOG).

After a period where tech investors wondered why GOOG wasn't performing better, and why it's valuation trailed that of other Internet stocks, GOOG has now rallied back to new yearly highs.

The fundamentals at the company have remained strong. Earnings and revenue growth have been robust, and they continue to gain incremental market share in the search market. Additionally, they have started to make acquisitions both for online advertising, as well as the burgeoning video ad market.

As one of the great growth stocks of this cycle, I believe GOOG should get a premium, growth stock multiple. I think the stock will reach $600 by year-end, which isn't even that big of a stretch.

A look at the chart above shows the stock hit new highs yesterday, which removes any future resistance levels. This consolidate pattern has been a long time in the making. GOOG first hit $513 in November 2006. So this breakout is even more meaningful, imo.

The stock looks a little short-term overbought. But I suspect that after some mild consolidation, GOOG should enjoy a nice second half of the year, and so should investors.