The Google trade is dead, Jeff Macke said on Thursday’s Closing bell ahead of the search giant’s earnings release.
Macke said he would rather own companies, tech or otherwise, that are impervious to bad news. And with all the bad news out there, Google is simply too risky a bet right now, he said.
Instead, he’d rather be buying Wal-Mart , if only it pulled back a bit. WMT makes 52-week highs seemingly every day as the company taps into the economic downturn as a source of profit, counting on people to "trade down" their shopping habits.
Within the tech sector, Macke highlighted Netflix as a stock that could be preparing for a breakout. Now that Blockbuster , Netflix’s main competitor, has all but given up its mail-order business as it shifts its focus to acquiring electronics retailer Circuit City , Macke thinks Netflix could further dominate the DVD rental industry.
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