Alphabet Inc. (NASDAQ:GOOG) stock thrives because of Ruth Porat’s smart, quiet guidance

Alphabet Inc. (NASDAQ:GOOG) stock thrives because of Ruth Porat’s smart, quiet guidance

Alphabet Inc. (NASDAQ:GOOG) stock thrives because of Ruth Porat’s smart, quiet guidance

Since Ruth Porat became chief financial officer of Alphabet (NASDAQ:GOOGL) on May 26, 2015, the Google stock price has increased 102%. That’s over $350 billion in shareholder value created in less than four years.

I admit to having been a Porat skeptic. Her experience at Morgan Stanley (NYSE:MS) did not inspire confidence in me. I’m here today to say I was wrong. I was as wrong as wrong can be. My fear was that Porat would strangle creativity at Google. I thought she would hand out dividends like candy, or take the company’s focus away from its primary mission of search.

Instead she created financial discipline, which included the creation of Alphabet itself. She has also become the de-facto CEO, allowing co-founders Sergey Brin and Larry Page to focus on other things.

Porat separated Alphabet’s moonshots into “other bets,” shut down what didn’t work like Google Fiber, given autonomy to the car unit under the name Waymo, and brought the home automation unit, Nest, back into the company when its spin-out didn’t work.

Porat has followed Amazon.Com (NASDAQ:AMZN) into voice interfaces, as Page once followed Apple (NASDAQ:AAPL) into phones, and it’s working. Now Porat is quietly following Apple into health with Verily, looking to build miniature glucose monitors, test for heart disease through the eyes, and conduct research into how people get sick.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 1,174.59.

The projected lower bound is: 1,059.68.

The projected closing price is: 1,117.13.


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 23 white candles and 27 black candles for a net of 4 black 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 70.9925. This is not an overbought or oversold reading. The last signal was a buy 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 55.29. 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 92 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 13. This is not a topping or bottoming area. The last signal was a sell 13 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 11 period(s) ago.

Rex Takasugi – TD Profile

ALPHABET INC C closed up 0.920 at 1,116.050. Volume was 46% below average (neutral) and Bollinger Bands were 52% narrower than normal.

Open High Low Close Volume___
1,106.9501,117.9801,101.0001,116.050 968,760

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

Moving Averages: 10-period 50-period 200-period
Close: 1,113.58 1,076.00 1,122.36
Volatility: 13 35 32
Volume: 1,190,027 1,662,015 1,621,202

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 0.6% below its 200-period moving average and is in an downward trend. Volatility is low 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 bearish on GOOG.O and have had this outlook for the last 2 periods.

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