Why I'm Still Short Google

Google (GOOG) rose 20 points Friday morning after its first-quarter earnings release Thursday night. I shorted the stock Thursday morning right after the open, as the stock traded around $780. Let's take a look at the chart to see what might happen next.

Google put up strong numbers, and the stock popped in after-hours trade -- but then the shares surrendered those gains when it became apparent that the company had benefited from an inordinately low effective tax rate. This calls into question the quality of Google's earnings, as a higher rate would've resulted in lower earnings. After trading above $800, shares plunged to $760 in a wild after-hours session before they settled in the mid-$770s....311 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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