Buybacks of Alphabet Inc. (NASDAQ:GOOG) stock would be a boon to stalwart investors
Recent troubles with Alphabet (NASDAQ: GOOG GOOGL) are indicative of the many moving parts that go into the bull thesis, as has been demonstrated by recent weakness in Google stock.
As is the case with many large- and mega-cap technology companies these days, there are reasons to be concerned about the parent of internet search giant as well as reasons to believe Google stock could easily amass more upside.
Let’s dispense with one of the major headwinds facing Alphabet and some of the other Silicon Valley behemoths. Like it or not, Alphabet has had issues with data security, and the company probably has not done an adequate job of convincing folks on Capitol Hill that it’s a politically neutral enterprise. Hence, the ire of regulators.
For Alphabet stock bulls, the good news is that markets appear to be assigning long odds on a legitimate breakup of the company. While it’s lagging the Nasdaq-100 Index by more than 600 basis points, Alphabet stock is up 15.65% year-to-date.
Good News for Google Stock
Assuming nothing extraordinary emerges, the regulatory headwinds facing Alphabet are largely baked into the stock. There’s no denying the company is an earnings powerhouse. Last month,Alphabet reported a second-quarter profit of $14.21 a share, beating estimates of $11.30.
“Alphabet dominates the online search market with Google’s global share above 80%, via which it generates strong revenue growth and cash flow,” said Morningstar in a recent note. “We expect continuing growth in the firm’s cash flow, as we remain confident that Google will maintain its leadership in the search market.”
Overall, the bias in prices is: Upwards.
By the way, prices are vulnerable to a correction towards 1,153.10.
The projected upper bound is: 1,234.72.
The projected lower bound is: 1,104.80.
The projected closing price is: 1,169.76.
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.
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 40.3315. This is not an overbought or oversold reading. The last signal was a buy 6 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 49.63. 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 12 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 -75. This is not a topping or bottoming area. The last signal was a sell 11 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 7 period(s) ago.
Rex Takasugi – TD Profile
ALPHABET INC C closed up 2.970 at 1,167.260. Volume was 21% below average (neutral) and Bollinger Bands were 13% wider than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 1,178.66 1,136.64 1,122.53
Volatility: 37 35 36
Volume: 1,505,448 1,473,435 1,614,560
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 4.0% 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 moderate flows of volume out of GOOG.O (mildly bearish). Our trend forecasting oscillators are currently bullish on GOOG.O and have had this outlook for the last 39 periods.
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