Alphabet Inc. (NASDAQ:GOOG) made its first big cloud computing acquisition

Alphabet Inc. (NASDAQ:GOOG) made its first big cloud computing acquisition

Alphabet Inc. (NASDAQ:GOOG) made its first big cloud computing acquisition

Alphabet‘s (GOOGL) Google made its first big cloud computing acquisition under new boss Thomas Kurian by purchasing data analytics firm Looker for $2.6 billion in cash, the company said Thursday. Google stock edged down on the news.

The internet search and advertising giant and Santa Cruz, Calif.-based Looker have partnered in cloud computing services. Furthermore, Looker’s analytics platform uses business intelligence and data visualization tools.

Looker “provides users with a powerful analytics platform that delivers applications for business intelligence and use-case specific solutions such as sales analytics, as well as a flexible, embedded analytics product to collaborate on business decisions,” Kurian said in a blog post.

He added: “This acquisition builds on an existing partnership between our two companies where we share more than 350 joint customers, such as Buzzfeed, Hearst, King, Sunrun, WPP Essence, and Yahoo!”

Google Cloud Business Could Target Software Makers

So far, Google has aimed to woo enterprise customers with cloud-based data analytics and artificial intelligence tools.

“With Looker out of the way, the question turns to ‘What else is on Google’s cloud shopping list?,” said Aaron Kessler, a Rayond James analyst in a report. “While the breadth of public cloud makes it hard to list specific targets, vertical specific solutions appear to be a strategic priority for Mr. Kurian.”

In addition, other analysts have mentioned Atlassian (TEAM) or Splunk (SPLK) as possible targets for the Google cloud computing unit. Acquiring an enterprise software company would give Google a corporate customer base and salespeople.

Google stock edged up 0.3% to 1,047.76 on the stock market today. Google stock has tumbled below its 200-day moving average, often a sell signal.

Overall, the bias in prices is: Downwards.

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

By the way, prices are vulnerable to a correction towards 1,146.87.

The projected upper bound is: 1,105.43.

The projected lower bound is: 977.64.

The projected closing price is: 1,041.53.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 white candles.

A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).

A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

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 22.5255. This is not an overbought or oversold reading. The last signal was a buy 0 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 28.92. This is where it usually bottoms. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 26 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 -117.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 11 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 sell 26 period(s) ago.

Rex Takasugi – TD Profile

ALPHABET INC C closed up 2.120 at 1,044.340. Volume was 11% above average (neutral) and Bollinger Bands were 61% wider than normal.

Open High Low Close Volume___
1,044.9901,047.4901,033.7001,044.340 1,689,538

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 1,092.23 1,175.16 1,128.50
Volatility: 38 35 35
Volume: 1,949,713 1,533,782 1,652,433

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 7.5% 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 moderate flows of volume out of GOOG.O (mildly bearish). Our trend forecasting oscillators are currently bearish on GOOG.O and have had this outlook for the last 24 periods. Our momentum oscillator is currently indicating that GOOG.O is currently in an oversold condition.

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