Alphabet Inc. (NASDAQ:GOOG) regulatory troubles continue

Alphabet Inc. (NASDAQ:GOOG) regulatory troubles continue

Alphabet Inc. (NASDAQ:GOOG) regulatory troubles continue

Last year was a tough one for Google parentAlphabet (NASDAQ:GOOGL) (NASDAQ:GOOG). The stock couldn’t seem to get any momentum and ended the year barely breaking even. But shares have gained 22% so far this year, and the company is trying to build on that momentum. Regulatory headaches, however, keep coming back to haunt the search leader.

Alphabet will be making its case to investors, as the company is scheduled to report the results of its first quarter after the market close on Monday, April 29. Let’s recap the company’s fourth-quarter performance and look at its most recent regulatory headaches to see if it provides any insight into what investors can expect when Alphabet reports earnings.

On March 20, the European Commission — the legislative body of the European Union (EU) — levied a new antitrust fine totaling $1.49 billion euros ($1.7 billion) against Google. The commission alleges that Google abused its dominant market position to force AdSense customers to sign contracts that forbid them from placing advertising from competing search engines. The company has since removed the offending restrictions from its agreements.

Google said it will be accruing for the entire fine this quarter, in compliance with accounting rules, which will reduce its operating income, net income, and earnings per share by the full amount of the fine. 

This is the third such EU fine in as many years. The body fined Google a record 4.34 billion euros ($5 billion) last year, accusing Google of abusing its dominant market position in mobile. Google was ordered to stop bundling Chrome and search apps in its Android mobile operating system. This came on the heels of a 2.42 billion-euro fine ($2.7 billion at the time) in 2017 for systematically favoring its own shopping service in search results. 

With its $9.4 billion in fines and counting, investors are hoping there’s some end in sight.

Overall, the bias in prices is: Upwards.

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

By the way, prices are vulnerable to a correction towards 1,180.95.

The projected upper bound is: 1,293.99.

The projected lower bound is: 1,224.44.

The projected closing price is: 1,259.22.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white candles. During the past 50 bars, there have been 29 white candles and 21 black candles for a net of 8 white candles.

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 86.3888. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 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 70.24. This is where it usually tops. 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 22 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 140.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 16 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 5 period(s) ago.

Rex Takasugi – TD Profile

ALPHABET INC C closed down -8.550 at 1,256.000. Volume was 32% below average (neutral) and Bollinger Bands were 8% wider than normal.

Open High Low Close Volume___
1,264.1201,268.0101,255.0001,256.000 1,018,753

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 1,231.50 1,177.59 1,138.04
Volatility: 10 19 32
Volume: 1,011,224 1,270,336 1,596,399

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 10.4% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect moderate flows of volume into GOOG.O (mildly bullish). Our trend forecasting oscillators are currently bullish on GOOG.O and have had this outlook for the last 36 periods. Our momentum oscillator is currently indicating that GOOG.O is currently in an overbought condition.

The following two tabs change content below.
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.