Run GOOG Run

You know why GOOG isn't going down anytime soon? Because everybody's down on GOOG right now. People are worrying out loud that this is another dot com bubble. That's the surest indication. Also, check out the long/short ratio on ClearStation.

Google ads are dumb

As everyone knows, Google ads are pretty dumb. Keyword-driven ads are too simplistic, especially for third party, niche sites. They don't care about context or propriety. This is a huge inefficiency. And even with this inefficiency, Google's revenues are what they are, and growing at the rates they are growing. Now think about this: Google's engineers are experts in artificial intelligence. They are innovative. They will eventually figure out how to get context into the picture. Think about getting 50% click-through ratio instead of 5%. It is a fundamental change in the scale and scope of Google's operation. One reason to be bullish.

(I'm not necessarily bullish on GOOG. Click fraud remains a big threat to Google's revenues from small ad network partners.)