google stock forecast for 2015 based on a predictive algorithm

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Google Stock Forecast For 2015 Based On A Predictive Algorithm Seeking Alpha Article © I Know First 2014. All rights reserved. www.iknowfirst.com

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Google Stock Forecast For

2015 Based On A PredictiveAlgorithm

Seeking Alpha Article

© I Know First 2014. All rights reserved.

www.iknowfirst.com

Summary

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Stock experienced a pullback starting in September 2014, falling

16% since that time.

Investors and analysts are concerned about increased competition

and stagnant net income growth due to increasing costs.

Google will rebound in 2015, as the negativity facing the stock is

old news and many of the concerns facing the company are

overblown.

I Know First’s algorithm is bullish for Google in the three-month

and one-year time horizon.

Google Stock Price Performance

Stock Price has shown a negative trend

since september 2014, as seen above.

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Some Negative Attributes

Increasing Competition: Facebook has gained more market share on

advertising and Apple’s Iphone 6 success has taken away formers Android

users.

Diminishing Revenue Growth Rate: search advertising revenue has

shown smaller growth rate, while YouTube and Google Play Store has

become stronger. This is a problme beacuse the first revenue’s drivers is

the most profitable one.

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Some Negative Attributes (Part 2)

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Increasing Operating Costs: Google’s operating expenses as a %

of revenues has show a relative increase on a 3rd Quarter basis

comparison, as seen on the table below.

Antitrust Investigation:

Google is currently facing

na antitrust investigation

by the European

Comission, which could

result in a $6 billion fine.

2015 Positive Aspects

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Google’s Mobile Dominance: the Android Market Share on the 3Q

of 2014 was of 84%, giving Google a natural advantage on what is

widely believed as the future market of advertising.

Acquisition: Google has acquired during 2014 Nest, drone maker

Titan Aerospace and satellite company Skybox Imaging. This

movement might be proven as smart decisions, like Youtube and

Android were.

Algorithmic Analysis For 2015

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As of January 15th, 2015, the I Know First algorithm is bullish in the

three-months & one-year time horizons.

Conclusion

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Google had their worst year in 2014 since 2008, falling 5%,

while many of their competitors had fantastic years

Even though profit margins have not seen growth in recent

years, the company is still healthy, and will be able to rebound in

2015.

If the company backs off of their increased spending, the profit

margins will see immediate growth.

While Google might have been overbought in 2014, the pullback

has been completed and the stock is now worth considering as a

position in any investor's portfolio.

We developed an advanced algorithm

based on artificial intelligence and machine

learning that also incorporates elements of

artificial neural networks and genetic

algorithms

Dr. Lipa Roitman, a scientist with over 20

years of experience, led our R&D team to

develop and consistently enhance the

algorithm

Our live portfolio from 2013 returned 60.66%

in 12 months beating the S&P 500 by 31.27%

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A unique financial market forecasting algorithm that analyses, models and

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ETF’s

Interest Rates

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How To Read The Prediction

Two indicators:

Signal – Predicted movement of the asset

Predictability Indicator – Historical correlation between the prediction and the

actual market movement

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