Alphabet Inc. (NASDAQ:GOOG) next leg of growth will come from India

Alphabet Inc. (NASDAQ:GOOG) next leg of growth will come from India

Alphabet Inc. (NASDAQ:GOOG) next leg of growth will come from India

When it comes to tech giants like Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), there’s a lot of concern among stock investors about where their growth is going to come from. After all, if you look at GOOG specifically, the company already controls more than 90% of the global digital search market, more than 60% of the global browser market and about 30% of the e-mail market.

Plus, the company’s core digital ad growth rates are slowing, the cloud can’t grow rapidly forever, its other new hardware products like Google Home have been only minor successes, and its  autonomous driving unit, Waymo, won’t meaningfully improve its financial results for awhile.

So it seems like there are more than a few reasons to be bearish on GOOG stock, and owners of Alphabet stock could be worried about the company’s outlook. But this perspective is too narrow. Importantly, it ignores the biggest long-term growth catalyst for Alphabet stock: India.

India is a big country. The second largest country in the world, it has 1.3 billion people. To put that number in perspective, the U.S. has just 340 million people. The world has just 7.7 billion people. Thus, India is nearly four times as large as America, and it has over 15% of the world’s population.

Here’s the kicker: a majority of Indians still aren’t on the internet. India’s internet penetration rate is below 40%, versus 90% in the U.S. and Canada, 85% throughout Europe, and nearly 60% in still- developing China.

Over the next decade, India will rapidly urbanize and digitize. As it does so, India’s internet penetration rates will continually increase, eventually exceeding 70%. As a result, hundreds of millions of the country’s citizens will come online. A significant portion of those people will use Google’s suite of internet services, like search, Gmail, and Chrome.

So Alphabet’s next leg of growth will come from India. This leg of growth will be huge, and it will provide a strong, positive catalyst for GOOG stock. Consequently, the exponential growth of the Indian internet market that will occur over the next decade is a good reason to own GOOG stock over the long-term.

Overall, the bias in prices is: Downwards

The projected upper bound is: 1,133.38.

The projected lower bound is: 984.89.

The projected closing price is: 1,059.14.

Candlesticks

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 22 white candles and 28 black candles for a net of 6 black candles.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

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 54.3139. This is not an overbought or oversold reading. The last signal was a buy 1 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 49.49. 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 buy 42 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 11. This is not a topping or bottoming area. The last signal was a sell 6 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 2 period(s) ago.

Rex Takasugi – TD Profile

ALPHABET INC C closed down -1.780 at 1,061.900. Volume was 22% below average (neutral) and Bollinger Bands were 9% narrower than normal.

Open High Low Close Volume___
1,068.0701,079.7601,053.9301,061.900 1,329,768

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

Moving Averages: 10-period 50-period 200-period
Close: 1,066.22 1,076.30 1,118.83
Volatility: 39 44 33
Volume: 1,931,185 1,948,972 1,706,436

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 5.1% below its 200-period moving average and is in an upward 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 bullish on GOOG.O and have had this outlook for the last 10 periods.

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