Google’s (NASDAQ: GOOGL) valuation relative to earnings might not be as high as some of its rivals and competitors — but like other tech giants, the company is faced with factors that could end up being major headwinds.
The overnight success of Chinese artificial intelligence (AI) startup DeepSeek has renewed concerns about high capital expenditures among most of the Magnificent Seven. In tandem with this, President Trump’s imposition of tariffs has injected a potentially adverse amount of volatility into the markets — and could have further repercussions down the line.
On a year-to-date (YTD) basis, the price of Google stock has increased by 5.47% — having closed above $200 for the first time on January 24.
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At press time, a single GOOGL share was changing hands for $199.65.
Finbold’s insider trading radar recently picked up an interesting transaction from one of the members of Google’s board. Ram Shriram, one of the founding board members of the company and one of its earliest investors made quite a large sale, as revealed by a January 31 Form 4 filing made with the SEC.
Early investor sells $5.3 million worth of Google stock
Shriram made two sell transactions on January 31. Both were made at an average price of $205 per unit of Google stock. The first trade encompassed 14,000 shares, worth roughly $2,870,000, while the second saw the sale of 12,000 GOOGL shares for approximately $2,460,000.
In total, the board member made $5,330,000 — and his timing was impeccable, as he sold at an all-time high (ATH).
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This signal is triggered upon the reporting of the trade to the Securities and Exchange Commission (SEC).
Beyond the usual interest that sales like these arouse, there’s an additional factor at play here. The tech giant will hold its Q4 earnings call after market close on Tuesday, February 4.
Although analysts are generally bullish, and the company’s big tech peers have had generally good results, this could still be a sign that insiders aren’t exactly confident that markets will react favorably and that Google stock will surge after the quarterly report is published.
However, the trade was executed in accordance with a 10b5-1 plan adopted on May 30, 2024. In simple terms, the sale was scheduled well in advance. As such, on its own, it cannot serve as a reliable bearish signal.
Following the sale, Shriram still holds 301,532 units of Google stock directly — while his spouse holds an additional 288,400.
Featured image via Shutterstock
