Alphabet Inc. (NASDAQ:GOOG) Stock and the AI Moves
From its early days, Google has invested heavily in AI. Keep in mind that the technology has been critical in evolving the core search engine.
The company has also pulled off a myriad of acquisitions to bulk up its AI capabilities. For example, with the deal for DeepMind, there has been a string of breakthroughs: an AI system that beat the world champ in Go; algorithms that have realized major cuts in energy usage for data centers; and technology to improve disease detection.
Then there was the development of TensorFlow, which has become the standard platform for creating AI models. Google open sourced it in late 2015, which accelerated progress across the industry.
Given all this, it should be no surprise that the company has been able to recruit some of the world’s most talented AI experts, researchers and engineers. Perhaps the most prominent is Geoffrey Hinton, who has been a driving force in building deep learning systems.
Google Stock and Autonomous Driving
Of course, the most prominent AI investment at Google is Waymo, which is the company’s autonomous vehicle division. The development of the technology was early, back in 2009. This head start has allowed Waymo to become a global leader. And yes, a critical part of this is the data.
There are over 10 million self-driving miles across public highways. Waymo has also created a ride-sharing service, taking on Uber (NYSE: UBER ) and Lyft (NASDAQ: LYFT ), that is available in Phoenix.
But the goal is to essentially license the technology and data. To this end, Waymo has entered a partnership with Renault SA (NASDAQOTH: RNSDF ) and Nissan Motor (NASDAQOTH: NSANY ).
Now it’s true that the autonomous driving market will take time to evolve, as there are complex regulations and technology issues to work out. But it seems like a good bet that Waymo will get a sizeable chunk of the opportunity.
Bottom Line on Google Stock
Going forward, Google will likely pull off more AI deals. Just look at last month’s $2.6 billion acquisition of Looker. The deal will allow Google to enter the lucrative market for BI (Business Intelligence).
Now when it comes to companies in hot categories like AI, the valuations are usually steep. But this is definitely not the case with Google stock, with the forward price-to-earnings multiple at 21X. This is fairly reasonable for a company that is continuing to grow, has a wide assortment of marquee assets and has a powerful AI business.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 1,194.71.
The projected lower bound is: 1,063.50.
The projected closing price is: 1,129.10.
Candlesticks
A white body occurred (because prices closed higher 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 25 white candles and 25 black candles.
Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.
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 95.4142. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 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 58.66. 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 19 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 127.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 7 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 16 period(s) ago.
Rex Takasugi – TD Profile
ALPHABET INC C closed up 10.010 at 1,131.590. Volume was 15% below average (neutral) and Bollinger Bands were 38% narrower than normal.
Open High Low Close Volume___
1,117.8001,132.8801,116.1401,131.590 1,264,540
Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 1,102.28 1,128.27 1,118.29
Volatility: 23 36 35
Volume: 1,386,081 1,658,792 1,654,600
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 1.2% 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 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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