Alphabet Inc. (NASDAQ:GOOG) workers and investors demand accountability
Of the five huge companies known as “cloud czars,” the one that has done worst for shareholders in 2019 is Alphabet (NASDAQ:GOOGL). These are the artists formerly known as Google. GOOGL stock’s first-half advance of 4.1% not only trails Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), Facebook (NASDAQ:FB) and Microsoft (NASDAQ:MSFT), but is less than a quarter of the gain in the average S&P 500 index stock, which is up 16.4%.
Alphabet workers and investors came to their annual meeting to demand accountability, but the owners didn’t hear them. Co-founders Larry Page, still listed as the company’s CEO, and Sergey Brin, listed as president, were no-shows. Together, they control the voting shares under Google’s dual-share structure.
If Silicon Valley is all about the “cult of the founder,” and the founders don’t care about the company, what sound does that make?
Google Becoming Viacom?
Dual-share structures are said to exist so entrepreneurs can keep providing corporate vision while attracting capital. Page and Brin have 83% of the Class B GOOG shares, each with the voting power of 10 GOOGL shares. This lets them stop any move toward reform.
This was fine when Larry and Sergey were entrepreneurs whose vision was driving the company. But both are now, effectively, retired, as chief financial officer Ruth Porat runs the holding company … and Google CEO Sundar Pichai controls profitability. But they’re employees, not owners.
Alphabet is in a similar position to Viacom (NASDAQ:VIAB) or CBS (NYSE:CBS), both controlled by National Amusement and Sumner Redstone. Redstone is 96, but there is a trust document describing what happens to those companies after his death.
If a jet ski ran over Larry and Sergei tomorrow on a Caribbean island, what would happen to Google? They each have two minor children. Would the kids run the company? The New York Times (NYSE:NYT) is on its fifth or sixth generation of Adolph Ochs’ descendants controlling its fate. Is feudalism coming to the tech business?
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
The projected upper bound is: 1,142.30.
The projected lower bound is: 1,011.65.
The projected closing price is: 1,076.97.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 25 white candles and 25 black candles.
Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.
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 26.1787. This is not an overbought or oversold reading. The last signal was a sell 1 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 41.34. 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 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 -58. This is not a topping or bottoming area. The last signal was a sell 1 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 buy 10 period(s) ago.
Rex Takasugi – TD Profile
ALPHABET INC C closed down -6.550 at 1,079.800. Volume was 21% above average (neutral) and Bollinger Bands were 14% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 1,098.75 1,145.26 1,120.24
Volatility: 21 36 35
Volume: 1,380,023 1,646,718 1,655,314
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 3.6% below 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 4 periods.