Alphabet Inc. (NASDAQ:GOOG) Stock Falls As Revenue Misses
Google-parent Alphabet (GOOGL) late Thursday reported third-quarter revenue that missed analyst estimates, while profit topped views. Google stock fell in after-hours trading as one analyst pointed to rising competition with Amazon.com (AMZN) in digital advertising.
The web search giant said earnings were $13.06 a share, up 36% from a year ago, with revenue rising 22% to $33.74 billion. A year earlier, Google earned $9.57 a share on sales of $27.77 billion. Analysts expected Google to report earnings of $10.42 a share on sales of $34.04 million for the period ended Sept. 30.
“We’re seeing a larger-than-expected slowdown in Google properties’ revenue, representing its core search business,” eMarketer analyst Monica Peart said in an email. “This is likely related to the ramp-up in competition from Amazon, as consumers increasingly turn to the e-commerce giant for their product searches.”
Google’s profit included $1.20 in gains on equity securities. Excluding the gain, Google had earnings of $11.86 a share. Lower corporate taxes also boosted profit.
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 1,152.43.
The projected upper bound is: 1,148.71.
The projected lower bound is: 1,037.68.
The projected closing price is: 1,093.19.
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 22 white candles and 28 black candles for a net of 6 black 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 42.1771. This is not an overbought or oversold reading. The last signal was a buy 8 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 43.00. 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 9 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 -53. This is not a topping or bottoming area. The last signal was a buy 0 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 13 period(s) ago.
Rex Takasugi – TD Profile
ALPHABET INC C closed up 44.860 at 1,095.570. Volume was 69% above average (neutral) and Bollinger Bands were 66% wider than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 1,097.49 1,166.34 1,128.36
Volatility: 49 31 32
Volume: 1,812,278 1,562,041 1,693,284
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 2.9% below 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 13 periods. Our momentum oscillator has set a new 14-period high while the security price has not. This is a bullish divergence.