Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Google
So What: The pop appears due to skeptics' reversing themselves. These are the traders and short-sellers who've argued Google doesn't benefit from giving away the Android smartphone operating system, even as it's putting pressure on Apple
Now What: While the majority of Google's revenue is still derived from Web searches, Android, Google TV, YouTube, Google Apps, and related services are catching on as consumers become accustomed to cloud computing. As investors, we want to see these services gain traction so it's encouraging to see that Android and the AdMob mobile network Google acquired are now on track to produce $1 billion in annual revenue. So long as this continues to be a growth segment -- and there's no reason to believe it won't be -- Google remains a solid buy.
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Fool contributor Tim Beyers is a member of the Rule Breakers stock-picking team. He had stock and options positions in Apple and a stock position in Google at the time of publication. Check out Tim's portfolio holdings and Foolish writings, or connect with him on Twitter as @milehighfool. You can also get his insights delivered directly to your RSS reader. The Motley Fool owns shares of Apple and Google and is also on Twitter as @TheMotleyFool. Its disclosure policy is at least 10% better than other disclosure policies.