“If they’re not able to put up good numbers, you might see the stock rollover and actually fall to the mid-400s,” he said.
Sarhan pointed out that the consensus EPS estimate is $7.16, but the whisper number is $7.24.
“That’s a high bar,” he said.
After Google’s stock had a huge run up from the end of 2012 to the beginning of 2014, it paused to digest that move. Investors are running out of patience, Sarhan explained, adding that they want to see that the company can compete and monetize all of its new products.
Sarhan said Google’s stock needs a catalyst for investors, because it can’t stay like this forever.
“If anything, you can argue they’re making a topping pattern, which is not a good pattern,” he said.
Google recently traded down 1.32 percent ahead of its earnings report on Thursday.
Brianna Valleskey contributed to this report.