Feb. 11 at 9:06 PM
$GOOG $GOOGL To those wondering when the selloff will end, here’s the rub :
1. Short term : 1-3 days after earnings. This is now done. This is when HFTs and their algos sold automatically because FCF fell below their thresholds.
2. Mid-term : Investment committee review at pension funds : Human managers review earnings to see if the FCF decrease is structural or short term. They sell within 1-2 weeks from earnings. This should be ending this week, but expect it to continue this week.
3. Quarterly rebalancing : Funds that want to rebalance their Google positions will sell slowly through March 31, 2026. This will keep a lid on the price, and prevent it from crashing too much but will also keep it range bound.
Given this information, and what you already know about Google, what should you do and expect? Expect most of the drops to happen by this week end, and then the price to be flattish till March 31st, 2026.
The gains come after that :)
