Alphabet Inc. (NASDAQ:GOOG) Opens Second Stadia Studio, Boosts Gaming Initiatives
Alphabet’s GOOGL division Google has been firing on all cylinders to expand presence in the cloud gaming space backed by growing initiatives for its game streaming platform — Stadia. Notably, the game streaming platform was publicly released in November 2019.
Recently, the company announced that it is opening a second development studio for Stadia. Its first studio is located in Montreal.
The new studio will be located in Playa Vista, California. It will be led by Shannon Studstill who was formerly the head of the venerated Santa Monica Studio that developed the God of War franchise for Sony.
The latest studio is likely to enhance Google’s gaming skills. Though specific details are yet to be disclosed, the studio definitely aims to focus on delivering exclusive games so that it can make its platform more attractive.
We believe the move will enable Google to deliver enhanced gaming experience to players, which in turn will bolster the adoption rate of Stadia.
Moreover, increasing investments by Google to bolster presence in the cloud gaming market, which holds immense potential, is likely to drive growth in the near term.
Alphabet Inc. Price and Consensus
Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote
Cloud Gaming Space Holds Promise
The search giant has been focusing in the cloud gaming market for quite some time now.
Per a report from MarketsandMarkets, the global cloud gaming market is expected to reach $3.1 billion at a CAGR of 59% between 2019 and 2024.
According to a report from Global Market Insights, the market is anticipated to see a CAGR of 30% over theperiod of 2019 to 2025.
According to Valuates Report, this particular market is projected to reach $740 million at a CAGR of 41.9% between 2019 and 2025.
Google is developing 450 games currently, which will be released on Stadia in 2020 and beyond. We believe that the company is well poised to penetrate rapidly on the back of its Stadia-expansion initiatives. The latest move is in sync with this strategy.
Intensifying Gaming Battle
The presence of an upbeat potential in the cloud gaming market has not only attracted Google but other tech giants like Amazon AMZN, Microsoft MSFT, Facebook FB and Tencent.
In December last year,Facebook acquired a Spanish cloud gaming company —PlayGiga — to gain foothold in the market. Moreover, the social media giant offers Facebook Gaming, which enablesusers to livestream their gameplay.
Further, Amazon is gearing up to announce its cloud-gaming service, which is expected to release in 2020. Moreover, the service will come integrated with Twitch, which offers video game streaming services.
Meanwhile, Microsoft is planning to launch its cloud-gaming platform — XCloud— in 2020, which is currently in public beta stage.
Nevertheless, Google’s growing game streaming initiatives are likely to strengthen its competitive position against the abovementioned companies.
Moreover, the company’s cloud-computing strength isa major positive as it strives to offer low latency, which in turn is likely to deliver better gaming experience.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
The projected upper bound is: 1,399.51.
The projected lower bound is: 1,237.35.
The projected closing price is: 1,318.43.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 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 55.3073. This is not an overbought or oversold reading. The last signal was a buy 3 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 36.86. 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 4 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 -90. This is not a topping or bottoming area. The last signal was a buy 3 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 9 period(s) ago.
Rex Takasugi – TD Profile
ALPHABET INC C closed down -67.480 at 1,319.040. Volume was 63% above average (neutral) and Bollinger Bands were 167% wider than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 1,378.18 1,430.03 1,262.14
Volatility: 62 37 30
Volume: 2,535,896 1,701,452 1,474,984
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 4.5% above its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 7 periods.