Alphabet Inc. (NASDAQ:GOOG) to acquire Looker Data Sciences for $2.6 billion

Alphabet Inc. (NASDAQ:GOOG) to acquire Looker Data Sciences for $2.6 billion

Alphabet Inc. (NASDAQ:GOOG) to acquire Looker Data Sciences for $2.6 billion

  • Google receives approval from British competition regulator to acquire Looker Data Sciences for $2.6 billion.
  • The Competition and Markets Authority (CMA) saw no risk of reduced competition or quality of services following the deal.
  • Google’s Cloud Computing segment is a distant third globally to Amazon and Microsoft.
  • Alphabet Inc. has so far gained just over 10% in the stock market in 2020.

In an announcement on Thursday, Google said that its buyout deal with Looker Data Sciences worth $2.6 billion has been completed. Looker Data Sciences is a prominent name in the league of big-data analytics. The deal was previously waiting for approval from the British competition regulator.

The deal was initially publicized in June and marked Google’s cloud business’s first prominent acquisition under the new CEO Thomas Kurian. The current deal follows BigQuery in its footsteps that previously turned profitable for Google. BigQuery is a management tool for large datasets.  

Competing against Microsoft’s Power BI, Domo Inc., and Tableau Software, Looker avoids the need of writing complicated scripts while performing calculations on high-value customers or the generated revenue to provide a visual representation of their data that makes it easier to analyze trends and patterns.

UK’s market regulator recently announced that after a thorough evaluation of the deal, it is confident that the market is not likely to be confronted with adverse effects like reduced competition or the overall quality of service upon completion of the deal. The CMA (Competition and Markets Authority) gave a green light to the two parties to go ahead with the acquisition as it saw no risk of higher prices for services either. According to the CMA:

“Although Google had the ability to make it difficult for rivals to access the Google generated data they need from online advertising and web analytics services, there was no strong evidence they would have the incentive to do this.”

In terms of revenue, Google’s cloud computing segment currently marks a distant third globally with Amazon keeping the first position and Microsoft being on the second. The aforementioned deal has also received formal approvals from the Austrian Federal Competition Authority and the U.S Department of Justice.

Thomas Kurian commented on the acquisition and stated:

“We believe we will be uniquely positioned to address the data analytics and business intelligence demands of even more enterprises globally, across all industries.”

Google’s parent company, Alphabet Inc., is currently exchanging hands at around $1,518 per share in the stock market that marks just over 10% growth in 2020 so far. In 2019, Alphabet’s performance was largely upbeat with the tech giant having recorded around 30% of annual growth in its share prices.

Technical Indicators

Overall, the bias in prices is: Upwards.

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

The projected upper bound is: 1,567.31.

The projected lower bound is: 1,471.00.

The projected closing price is: 1,519.15.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 30 white candles and 20 black candles for a net of 10 white candles.

A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

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 80.5413. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 15 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 66.01. 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 sell 13 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 120.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 14 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 2 period(s) ago.

Rex Takasugi – TD Profile

ALPHABET INC C closed down -3.610 at 1,514.660. Volume was 34% below average (neutral) and Bollinger Bands were 6% wider than normal.

Open     High      Low     Close     Volume___
1,512.6901,527.1801,504.6001,514.660 929,730
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 1,482.13 1,408.50 1,244.15
Volatility: 32 21 28
Volume: 1,910,500 1,530,274 1,444,234

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 21.7% above its 200-period moving average and is in an upward trend. Volatility is high 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 bullish on GOOG.O and have had this outlook for the last 46 periods.

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