Alphabet Inc. (NASDAQ:GOOG) fell after Morgan Stanley analysts write that the stock will likely continue to sink in the short term
Google parent company Alphabet was down 1% Tuesday after Morgan Stanley analysts warned the stock will continue to deteriorate in the short term. The drop shaved more than $8 billion from Alphabet’s market cap, which now sits at $780.9 billion.
Meanwhile, most other major tech stocks, such as Apple, Amazon and Uber, recovered Tuesday after Monday’s sell-off.
“We believe nothing has changed about GOOGL’s long-term ability to innovate to drive engagement/monetization across its leading ecosystem,” the analysts wrote in a note published Tuesday. “But, near-term uncertainty around ’19 Websites growth from GOOGL’s slowdown and clean up (which we think was largely YouTube and tough YouTube Y/Y comps from the roll-out of TrueView for Reach) is likely to weigh on the stock’s already low multiple and performance.”
Google reported slowing advertising revenue growth in its most recent earnings report, with 15.31% year-over-year growth in the quarter compared with 24.43% the year prior. On a call with analysts following the report, CFO Ruth Porat said changes on YouTube were to blame for some of the slowdown.
Google also announced new ad features on Tuesday, including a new ad format called Discovery ads that displays ads in products such as Gmail, YouTube and Google’s Discover tab in its apps.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
The projected upper bound is: 1,176.92.
The projected lower bound is: 1,062.86.
The projected closing price is: 1,119.89.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white candles.
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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 18.3493. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 6 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 31.36. 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 10 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 -114.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 6 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 10 period(s) ago.
Rex Takasugi – TD Profile
ALPHABET INC C closed down -11.590 at 1,120.440. Volume was 24% above average (neutral) and Bollinger Bands were 95% wider than normal.
Open High Low Close Volume___
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 1,162.50 1,197.00 1,137.38
Volatility: 23 30 33
Volume: 1,719,105 1,476,285 1,625,784
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.
ALPHABET INC C is currently 1.5% below its 200-period moving average and is in an downward trend. Volatility is high 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 bearish on GOOG.O and have had this outlook for the last 8 periods.
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