Alphabet Inc. (NASDAQ:GOOG) acquisition of Fitbit last month prompted immediate concerns about the tech giant’s new access to sensitive health data

Alphabet Inc. (NASDAQ:GOOG) acquisition of Fitbit last month prompted immediate concerns about the tech giant’s new access to sensitive health data

Alphabet Inc. (NASDAQ:GOOG) acquisition of Fitbit last month prompted immediate concerns about the tech giant’s new access to sensitive health data

Google’s acquisition of Fitbit last month prompted immediate concerns about the tech giant’s new access to sensitive health data, amid government scrutiny over its already-broad access to a range of private data on its consumers. Now, the tech giant will face a government probe over $2.1 billion deal, according to a new report.

The Department of Justice will review the Fitbit acquisition in addition to its investigation into Google’s broader business practices, the New York Post’s Josh Kosman reported Tuesday.

Companies considering mergers are required to file proposals with both the Department of Justice and the Federal Trade Commission, so that either antitrust agency can review the deal. Many of Google’s past deals have been reviewed by the FTC, which oversees a task force that monitors anticompetitive behavior in Silicon Valley, but the DOJ reportedly fought for jurisdiction to review the Fitbit deal and argued that reviewing the merger fit in with the government agency’s broader antitrust investigation of the tech giant.

Fitbit makes smartwatches and fitness wristbands that are capable of tracking a wearer’s sleeping habits, heart rate, and other personal information. The acquisition would give Google one of the leading companies in the growing market for wearable computing devices.

According to market research firm IDC, Apple was the No.1 maker of wearable devices worldwide in the third quarter, with a 35% share of the market. Fitbit was ranked fifth by market share.

The Department of Justice did not respond immediately to a request for comment. The FTC declined to comment. A Google spokesperson said that it was normal for mergers to be reviewed by the government, but declined to comment on reports that government concerns surrounding Google’s business practices had magnified scrutiny over the Fitbit deal.

Both the Department of Justice and a group of 50 state attorneys general are already investigating whether the company has engaged in anticompetitive practices.

Google’s acquisition of Fitbit at the beginning of November, announced amid the government investigations of its business practices, quickly came under fire from US lawmakers. Republican senator Josh Hawley tweeted an immediate criticism, asking why Google should be able to acquire more companies amid an ongoing Department of Justice investigation, and House Representative David Cicilline, heading the House antitrust investigation into big tech, told Bloomberg that the deal threatened “to further entrench [Google’s] market power online.”

The deal is expected to close in 2020, pending regulatory approval and other closing conditions, Fitbit said at the time.

Technical Indicators

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

The projected upper bound is: 1,384.66.

The projected lower bound is: 1,309.68.

The projected closing price is: 1,347.17.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 30 white candles and 20 black candles for a net of 10 white candles.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 82.9726. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 10 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 67.13. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 15 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 136.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 4 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 2 period(s) ago.

Rex Takasugi – TD Profile

ALPHABET INC C closed up 1.100 at 1,344.660. Volume was 15% below average (neutral) and Bollinger Bands were 26% narrower than normal.

Open     High      Low     Close     Volume___
1,341.5001,349.9751,336.0401,344.660 1,094,653
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 1,319.42 1,274.01 1,195.64
Volatility: 15 19 29
Volume: 1,195,049 1,272,086 1,410,748

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

ALPHABET INC C is currently 12.5% above its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of GOOG.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on GOOG.O and have had this outlook for the last 2 periods.

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