After bottoming in early June, shares of Google (click ticker for report: ) have been on an absolute tear. On August 20, when we released our updated report on the search giant, shares flashed a rare perfect 10 on the Valuentum Buying Index. Since then, shares have rallied nearly 20%.
The search giant has garnered lots of attention in the past few days for a bevy of reasons. Apple (click ticker for report: ) officially locked Google Maps out of iOS 6, and California legalized Google’s self-driving cars—neither of which materially impact the company at this time, however. We think Google’s fundamental outlook has been driving the stock higher. Search revenues continue to grow at a rapid clip, and market participants seem to have gathered that Facebook (click ticker for report: ) isn’t a major threat to Google’s core search business. Additionally, the firm’s acquisition of Motorola Mobility might be going better than expected, as it focuses on divesting unprofitable business lines.
Another prominent technology firm, eBay (click ticker for report: ) first flashed a 10 on the Valuentum Buying Index on September 23, 2011. Since we added the name to our Best Ideas Newsletter on October 3, 2011, shares have increased over 70% versus a gain of just over 30% for the S&P 500. Payment processor PayPal’s grown tremendously over the past year, and fixed-price auctions on eBay’s marketplace have become a formidable foe for Amazon (click ticker for report: ). We remain fans of both stocks at current levels, and we still hold shares of eBay in the portfolio of our Best Ideas Newsletter. We’re strongly considering adding Google in the coming weeks.