Price Action Volume _ GOOGLPrice Action &Volume are essential components of technical analysis in trading, and combining them can create a powerful strategy.
Remember, success is guaranteed only when combined with crucial risk management.
Alphabet
GOOGLE Buy the pull-back for a $145 Santa's rally.Alphabet Inc (GOOG) gave us a great +20% pre-earnings bullish signal last time we looked at it (July 25) that hit the $140.00 target before pulling back (see chart below):
Right now the price is above the 1D MA50 (blue trend-line), within two Channel Up patterns, with the latter being the (diverging) dotted one. With the 1D RSI hitting its Lower Highs trend-line that has caused technical pull-backs since July 28, we expect a short-term correction near the 1D MA50 and then rebound to price the Channel Up Higher High at $145.00. That will complete a +20% rise from October's bottom, which has been the average % rise for a bullish sequence within 2023.
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(NASDAQ: GOOGL) Is Alphabet Inc. a Buy?Thinking about the big picture
I always stress how important it is for long-term investors not to get caught up in any single quarter's performance. If you plan to own a stock for five or 10 years, what happens in any three-month period is hardly important in the grand scheme of things. This same approach should be applied to Alphabet.
Yes, the market reacted negatively to the tech giant's latest earnings. But a valid question to ask is: Is this company's long-term competitive position under threat? I think the answer to that question, based on the facts, is a resounding no.
Let's focus on Alphabet's bread-and-butter search business. According to statcounter.com, it still has a monopolistic position, with just under a 92% share of the global market.
Is OpenAI's ChatGPT integration really enough for consumers to ditch Google and start using Microsoft's Bing search engine? It's a stretch for someone to believe this to be true. To be fair, the market could shift radically in the next few years, but that is almost impossible to predict. And right now Google is still the leader in search, and as a result of that, digital advertising as well.
In order to position itself for the AI wars, Alphabet has just agreed to invest $2 billion in Anthropic, an AI start-up that has created a chatbot that is a direct competitor to ChatGPT. Maybe more importantly, Alphabet is planning to launch Gemini, its internally developed generative AI model, which could be more versatile and powerful than OpenAI's offerings. This could quiet the doubters who think this business is falling behind.
Additionally, investors have to ask if the growth of AI will really bring about entirely new use cases for consumers and businesses, or if this revolutionary technology will simply improve what already exists. As of right now, it looks like the latter will happen. And "with 15 products that each serve half a billion people, and six that serve over 2 billion each," according to CEO Sundar Pichai, Alphabet already owns some of the most popular, widely adopted internet properties on the face of the planet. This gives it a huge leg up to introduce AI innovations to an existing user base.
GOOGLE - The warning signs were thereWe did not trade this directly because:
- We were short on both the Nasdaq and the SPX500.
- Both the assets above had a better RR.
- Both have made us higher percentages than Google would've so far.
However, we deem it important to post google as it is exactly the type of trade set up that we preach about and showcases traditional Technical Analysis in its best light. It also drives the Index funds and so reflects how we've position ourselves lately.
Google broke down of its falling wedge and confirmed the breakdown. Before this it held a key level as resistance and was also showing extensive bearish divergence. Lastly, it was at a great value area for a short reaching just over the 0.786% retracement from the Low to ATH.
Please ask any questions you may have!
GOOGLE Almost oversold at the bottom of the Channel Up.Google is having a rough day following the revenue miss and has found itself at the bottom of the 5 month Channel Up.
This is a buy opportunity, as long as (1d) candles close inside the pattern.
Trading Plan:
1. Buy if the (1d) candle closes inside the Channel Up.
2. Sell if it closes under it.
Targets:
1. 146.00 (+15.50% rise, like the first bullish leg of the Channel Up).
2. 120.00 (estimated course of the MA200 (1d)).
Tips:
1. The RSI (1d) gives the most optimal buy opportunity at the bottom of its Channel Down around the 30.00 oversold level. Keep that in mind in case it coincides with a MA200 (1d) contact.
Please like, follow and comment!!
Google and Cambridge renew multi-year partnershipCambridge University and Google have forged a renewed, multi-year partnership aimed at funding and conducting groundbreaking research in the realm of artificial intelligence.
Their focus will be directed towards pressing concerns such as climate, healthcare, security, and the ethical deployment of emerging technologies.
Michele Donelan, the Secretary of State for Science, Innovation, and Technology, has officially confirmed this:
"Artificial intelligence can offer us enormous opportunities - growing the economy, creating new jobs and making lives longer, healthier and happier for British people."
Alphabet Inc: A Deep Dive into the Pros and Cons of Investing...Alphabet Inc: A Deep Dive into the Pros and Cons of Investing in the Tech Giant
Alphabet Inc., the tech behemoth that's likely woven into your daily life through its various products and services, has quietly become a ubiquitous presence. While Alphabet has consistently delivered solid returns to investors, it's currently trading 8% below its all-time high. This begs the question: Is this dip an opportunity to acquire shares of one of the world's best businesses at a slight discount from its peak price? Let's explore both the bullish and bearish arguments for this leading tech stock.
The Bearish Arguments
1. Competition from AI Chatbots:
One immediate concern revolves around the growing popularity of OpenAI's ChatGPT, an AI-powered chatbot integrated into Microsoft Bing's search engine. Some bearish viewpoints suggest that this could pose a threat to Google Search, which has historically dominated the market. If Bing and similar AI-powered platforms gain traction, Google's search dominance could wane.
2. Regulatory Scrutiny:
Like many tech giants, Alphabet finds itself in the crosshairs of regulators, both in the United States and abroad. The company has faced substantial fines in the past and is currently under scrutiny by the Department of Justice over Google Search's alleged monopolistic position. Regulatory risks persistently hover over Alphabet, causing concern among investors.
3. Digital Advertising Slowdown:
Another immediate challenge is the significant slowdown in the digital advertising market. After posting robust revenue growth in previous years, Alphabet's sales increased by less than 10% in 2022 and only 5% in the first half of 2023. This exposes Alphabet's business to the cyclicality of the industry, as ad spending is easily cut back during economic downturns.
The Bullish Arguments
1. Incredible Dominance and Success:
The fact that Alphabet faces regulatory threats underscores the incredible dominance this company has achieved, arguably making it one of the most remarkable businesses in history. According to CEO Sundar Pichai, Alphabet boasts "fifteen products that each serve half a billion people and six that serve over two billion each." These staggering statistics showcase the extent of Alphabet's reach.
2. Financial Strength:
From a financial perspective, Alphabet's performance is remarkable. In the last quarter (Q2 2023), the company achieved an outstanding operating margin of 29% and generated a whopping $22 billion in free cash flow. Its balance sheet is exceptionally strong, with $118 billion in cash, cash equivalents, and marketable securities, compared to just $14 billion in long-term debt.
3. Economic Moat and Network Effects:
Alphabet's wide economic moat assures investors of its enduring dominance. Network effects form the foundation of its operations, with Google Search playing a pivotal role in organizing the ever-expanding pool of internet information. Greater usage attracts more advertising dollars, enhancing the company's scale and power.
4. Data Advantage and AI Leadership:
Alphabet possesses a significant data advantage that will only strengthen over time. This data empowers the company to refine targeted ads, enhance its products, and continually innovate. Alphabet is also well-positioned to be a leader in the AI landscape. AI technology is already integral to its services like Gmail, Maps, and YouTube, making it an "AI-first" enterprise poised for future growth.
Conclusion
Investing in Alphabet Inc. offers a blend of opportunities and challenges. While regulatory concerns and market fluctuations are immediate considerations, the company's remarkable dominance, financial strength, data advantage, and leadership in AI present compelling reasons to consider it as a long-term investment. As with any investment, conducting thorough research and weighing the pros and cons is crucial before making a decision in the ever-evolving tech landscape.
Alphabet (GOOGL) -> Following The NasdaqMy name is Philip, I am a German swing-trader with 4+ years of trading experience and I only trade stocks , crypto , options and indices 🖥️
I only focus on the higher timeframes because this allows me to massively capitalize on the major market swings and cycles without getting caught up in the short term noise.
This is how you build real long term wealth!
In today's anaylsis I want to take a look at the bigger picture on Alphabet.
Just 9 months ago Alphabet stock perfectly retested major previous resistance which was turned support and in confluence with a retest of the 0.618 fib level we saw a rally of 60%.
Considering that Alphabet is now retesting the channel resistance it is quite likely that we will see a short term drop before I do expect new all time highs on Google stock.
- - - - - - - - - - - - - - - - - - - -
I know that this is a quite simple trading approach but over the past 4 years I've realized that simplicity and consistency are much more important than any trading strategy.
Keep the long term vision🫡
GOOGLE GOOGL - The ending diagonal formation on the stock signals a pause in the upward move. With a downward break of the structure, we are likely to see bearish pressure here.
GOOG - BULLISH OUTBRAKEIn the ongoing trial that commenced on Tuesday, the Justice Department is presenting its case, contending that the Alphabet unit (NASDAQ:GOOGL) actively pursued agreements with mobile carriers to secure prominent default placements on smartphones, thereby establishing a dominant position in the realm of online search. This antitrust trial, touted as one of the most significant in recent history, carries profound implications for the future landscape of the internet.
During Thursday's proceedings, the government concluded its examination of Antonio Rangel, an expert in behavioral biology affiliated with the California Institute of Technology. Rangel advanced the argument that consumers are inclined to maintain allegiance to web browsers on both desktop computers and mobile devices, particularly those that come pre-installed as the default application. This assertion underscores the potential consequences of default application placements in shaping user behavior and preferences within the digital ecosystem.
Winning such proceeding may skyrocket the Internet Giant.
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Alphabet's Stellar Performance Steals the Spotlight...Investor Enthusiasm Ignites as Alphabet's Stellar Performance Steals the Spotlight
Alphabet, the technological powerhouse, has ignited a blaze of excitement among investors with its latest financial report, revealing a striking showcase of accomplishments. With an impressive revenue tally of $74.6 billion and a robust $1.44 in diluted earnings per share, Alphabet has confidently outpaced Wall Street's predictions, sending its stock soaring in the aftermath of this announcement.
This surge in positive momentum isn't an isolated event but rather a continuation of a larger trend. Throughout the initial seven months of 2023, Alphabet's shares have outshone the Nasdaq Composite Index by an astonishing 50%, positioning the company as a beacon of success in the tech arena.
Amidst these resounding triumphs and bolstered by its trillion-dollar valuation, the pertinent query arises: Is this an opportune juncture to delve into an investment with this tech titan?
In the early reaches of 2022, as the Federal Reserve embarked on an assertive campaign of interest rate hikes to combat the burgeoning inflation threat, economists sounded the alarm for an impending recession. This climate of economic uncertainty prompted cautious corporate strategies, leading to curtailed marketing expenditures. The prevailing concern was that dwindling consumer demand might prompt individuals to prioritize essential essentials over discretionary splurges, rendering amplified advertising endeavors seemingly redundant.
In alignment with these cautious corporate maneuvers, Alphabet faced a dip in advertising revenue during the fourth quarter of 2022, with a slight residual dip spilling into the first quarter. However, the most recent quarter's records unveiled a promising uptick of 3% year-over-year in digital ad revenue. This resurgence paints a picture of Alphabet's prime driver – advertising – gaining momentum and veering towards a path of more normalized growth trajectories.
As economic pundits recalibrate their forecasts, lessening the odds of a 2023 recession, the burgeoning trend of escalating ad expenditures could potentially sustain its course across forthcoming quarters. Bearing in mind that ad revenue contributes a substantial 78% to Alphabet's overall company-wide earnings in Q2, this favorable development could undoubtedly bode well for the conglomerate's financial performance.
While Alphabet's advertising revenue strides modestly within single-digit percentages, a radiant star on its horizon is the Google Cloud Platform (GCP). This segment, responsible for a gamut of cloud services spanning computation, data storage, and AI tools, achieved a resplendent $8 billion in sales during the latest quarter – a robust surge of 28% in contrast to Q2 2022. This progression maintains a consistent rhythm from the preceding quarter.
A noteworthy watershed for stakeholders emerges in the form of GCP's burgeoning financial prowess. For the first time in its history, this segment garnered positive operating income within the initial quarter of the current year. Furthermore, the operating margin extended its boundaries to 5% during this latest three-month phase. Should GCP persevere along this trajectory and ultimately reach the commendable 28% operating margin precedent set by Amazon Web Services in 2022, Alphabet's holistic profitability stands poised for substantial amplification across forthcoming years.
With global cloud market forecasts predicting a staggering $2.4 trillion opportunity by 2030, GCP stands at a vantage point to steadfastly wield its leadership in this burgeoning industry. Presently positioned third in market ranking according to Statista, GCP finds itself ideally positioned to continually invest in fortifying its service portfolio for both present and future clientele, armed with a wealth of financial resources and access to top-tier technological talent at Alphabet's disposal.
Despite a meteoric ascent in the annals of 2023, Alphabet's stock remains alluringly valued. Currently, shares are traded at a trailing price-to-earnings (P/E) ratio of 28, situated beneath the 10-year average P/E multiple of 30.6. Amplifying this appeal, with a projected increase in net income, the forward P/E ratio emerges even more enticing at 23.9. These valuation metrics inherently furnish compelling rationales for contemplative investment in this reigning corporate giant.
Augmenting its charm, Alphabet showcases a robust financial stance as of June 30, boasting an impressive $118 billion in a confluence of cash, cash equivalents, and marketable securities, all resting snugly within its balance sheet. Moreover, its long-term debt strikes a modest chord at $14 billion. The company's consistent generation of substantial free cash flow further solidifies its stance as a stalwart stock suitable for the discerning investor to embrace and maintain in their portfolio.
Amidst a landscape characterized by its tantalizing valuation, robust financial posture, and an unwavering stream of cash flow, Alphabet emerges as an enticing prospect for those seeking a stable and propitious addition to their investment repertoire.
Alphabet long Erning weeks 52 Weeks High hitNew 52-week highs this week, powered by the Dow which, on Friday, extended its streak of positive days to ten — something the blue chip index has not done in almost six years.
Trend setup
Weekly bullish 52w high hit
Daily Bullish
4H Bllish
I have explained 2 scenarios to enter the bullish trend
also on lower tf compatble
A break below88 is bearish, and the end of bllish trend.
A break above 220 will catapult the up trend much more stronger.
In this case we can decie to take partial profits
or
we we ride the trend.
My decision:I ride the trend,if this happens. Why should I give more possible profits, and limit them?
Instead I focus on limiting the risk,but upside unlimited chances.
Some Technical Areas For Tesla, Apple & AlphabetHi,
A little guide for you about Tesla, Apple, and Alphabet. Pointed out some key areas from where to take out some profits or if you are interested in some sort of stocks then a couple of scarious from where you can jump in. Not an idea post, more like an analysis but still, it should give you a little picture about them.
Tesla (TSLA)
Recently the Tesla stock has been respected by technical analysis quite nicely. Several calls have worked almost perfectly and short-term targets are reached fairly easily.
Currently, for me, the Tesla stock is in the middle of nowhere. My previous short-term target was around $300 and it has been reached, so I will wait for further price action. If the price goes above $300 then I will consider it as a breakout and I need to see a price action above that to make a decision.
The sweet spot for me is the $190-$220. If the price reaches there then I'm ready to take it but we need to see a quite good selloff - let's see.
So, if you are not in Tesla then wait for a breakout above $300 which can confirm further growth, or wait for a pullback/selloff to the mentioned lower price zone.
Apple (AAPL)
This year has been quite good for Apple, the gain from the bottom is 58%. In the first week of 2023, it bottomed and after that, very solid and consistent grind to higher levels - a new all-time high has reached.
If you are on it then short-, and mid-term investors can think about taking some profits because it has reached to the round number of $200. The round number can act as a resistance level and the price can be stuck there for a while or it can get a rejection to downwards. So, if you don't have a long-term plan with AAPL then there is a place to take out some profits.
If you don't have any Apple shares then you should wait. Firstly, how the $200 act and wait for the price action. If it gets a pullback then you can grab it from the previous highs which now start to act as support levels. These are not the strongest areas but at least you have something to stick with because to buy it from the current price can be quite a huge mistake considering short-term investment.
So, if you see a pullback then be ready to act around 170 to 180 dollars, and the strongest price zone is around ~$150.
Alphabet (GOOG)
Technically the last weekly candle close was a small breakout. $126.5 has been a minor horizontal price level. This level has been a short-term support level and a couple of months ago it acted, and stopped the price, as a resistance. Now, we have this level "smashed" with quite a solid weekly candle and if you are interested then technically you have a light-green light to take it during the retest of ~$126.
Stay cautious after you have seen a monthly or weekly close below this level.
Regards,
Vaido
GOOGL: Closing The Gap Soon?Hello Fellow Stock Traders, Here's a Technical Analysis of GOOGL!
Alphabet Inc. (GOOGL) has exhibited a notable price development by surpassing its Exponential Moving Average 50 (EMA50) and subsequently rebounding off the dynamic support level. This particular price action suggests a bullish trend in the stock. Moreover, there has been an identifiable formation of a descending broadening wedge, followed by a breakout of the upper trendline, accompanied by a bullish marubozu candlestick pattern. This breakout signifies the potential for an upward movement in the stock price.
Furthermore, the bullish outlook is reinforced by the emergence of a golden cross on the Stochastic indicator within the Neutral Area. The occurrence of a golden cross within this context typically indicates a higher probability of an upward movement toward the target area.
Taking these technical factors into consideration, the current price action and indicators point towards a positive outlook for GOOGL, suggesting the likelihood of an upward trajectory in the near term.
It is important to note that the roadmap will no longer be valid once the target/support area is reached.
Feel free to support the channel by clicking the rocket button and sharing your opinions in the comments below!
"Disclaimer: This analysis is intended solely for educational purposes and does not constitute a recommendation to take a long or short position on NASDAQ:GOOGL ".
Google Bull Run StartsBought NASDAQ:GOOG at 106 $ and my targets are as shown on the chart
The reason for me is because the price has already breakout the price channel and retest it
Please let me Know what do you think
GOOGLE How is it looking before the earnings?It has been very long since we last looked into Google (GOOG) but last time we did (November 07 2022) we gave a massive buy signal (see chart below) at the market's absolute bottom:
The stock price rose +49% since then, giving us one of the most successful low risk trades of the year. With the company reporting its Earnings today though, we shift back to the 1D time-frame where the stock has been trading within a clear Channel Up throughout this recovery phase. Based on the 1D MACD Bearish into Bullish Cross sequence, we may be at a Higher Low leg as on March 13.
As long as the price is trading within the Channel Up and the (dotted) Channel Down, we remain bullish, aiming at a +21% rise (standard inside the Channel Up) and a price target of $140.00. If the price breaks below the Channels' bottoms, we will sell, targeting the 1D MA200 (orange trend-line) at $106.50.
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Alphabet(Google) Long BullishTechnical Bullish
HHHL above 99
Trendomat BuySell pressure Bullish
Weekly average price above Monthly average price
145.32 is critical as Volume value is weak.
Incase volume would increase and abreak above 151
Alphabet will potentially walk to above 210
A break below 86 is bearish.
Return vs Industry: GOOGL underperformed the US Interactive Media and Services industry which returned 22.5% over the past year.
Return vs Market: GOOGL underperformed the US Market which returned 14.5% over the past year.
Stable Share Price: GOOGL is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: GOOGL's weekly volatility (4%) has been stable over the past year.
Price-To-Earnings vs Peers: GOOGL is good value based on its Price-To-Earnings Ratio (26.7x) compared to the peer average (51x).
Price-To-Earnings vs Industry: GOOGL is expensive based on its Price-To-Earnings Ratio (26.7x) compared to the US Interactive Media and Services industry average (19.9x)
What is the Fair Price of GOOGL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: GOOGL ($123.1) is trading below our estimate of fair value ($160.36)
Significantly Below Fair Value: GOOGL is trading below fair value by more than 20%.
Alphabet is forecasted to grow earnings and revenue by 13.1% and 9% per annum respectively. EPS is expected to grow by 14.6%. Return on equity is forecast to be 22.3% in 3 years.
Analyst Future Growth Forecasts
Earnings vs Savings Rate: GOOGL's forecast earnings growth (13.1% per year) is above the savings rate (2.1%).
Earnings vs Market: GOOGL's earnings (13.1% per year) are forecast to grow slower than the US market (15.7% per year).
High Growth Earnings: GOOGL's earnings are forecast to grow, but not significantly.
Revenue vs Market: GOOGL's revenue (9% per year) is forecast to grow faster than the US market (7.5% per year).
High Growth Revenue: GOOGL's revenue (9% per year) is forecast to grow slower than 20% per year.
Future ROE: GOOGL's Return on Equity is forecast to be high in 3 years time (22.3%)
Earnings and Revenue History
Quality Earnings: GOOGL has high quality earnings.
Growing Profit Margin: GOOGL's current net profit margins (20.6%) are lower than last year (27.6%).
Earnings Trend: GOOGL's earnings have grown significantly by 25.9% per year over the past 5 years.
Accelerating Growth: GOOGL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: GOOGL had negative earnings growth (-21.4%) over the past year, making it difficult to compare to the Interactive Media and Services industry average (-16.9%).
High ROE: GOOGL's Return on Equity (22.5%) is considered high.
Financial Position Analysis
Short Term Liabilities: GOOGL's short term assets ($162.0B) exceed its short term liabilities ($68.9B).
Long Term Liabilities: GOOGL's short term assets ($162.0B) exceed its long term liabilities ($39.7B).
Debt to Equity History and Analysis
Debt Level: GOOGL has more cash than its total debt.
Reducing Debt: GOOGL's debt to equity ratio has increased from 3.3% to 4.5% over the past 5 years.
Debt Coverage: GOOGL's debt is well covered by operating cash flow (757.9%).
Interest Coverage: GOOGL earns more interest than it pays, so coverage of interest payments is not a concern.
CEO Compensation Analysis
Compensation vs Market: Sundar's total compensation ($USD225.99M) is above average for companies of similar size in the US market ($USD12.23M).
Compensation vs Earnings: Sundar's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
GOOGL Alphabet Options Ahead of Earnings ! Sell-Off Thesis !If you haven`t sold GOOGL here:
or reentered here:
Then analyzing the options chain and chart patterns of GOOGL Alphabet Inc prior to the earnings report this week,
I would consider purchasing the 115usd strike price Puts with
an expiration date of 2024-1-19,
for a premium of approximately $6.15.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
While Google currently holds a dominant position in the search engine market, the landscape is dynamic and subject to change. If Microsoft successfully leverages its partnership with OpenAI to enhance Bing's capabilities, coupled with strategic marketing initiatives, it could potentially chip away at Google's market share over time.
You can read my full GOOGL Sell-Off thesis here:
Looking forward to read your opinion about it.
Trading should be made simple. #GOOGLYou don't need a super complicated trading strategy to make money. You need a sound risk/money management, realistic expectations and abuncance of patience.
When price is below 20/50/200, you just simply stay in cash. When price is above 20/50/200.. wait until it has form a base and/or made a decent pullback. Wait.
Alphabet vs. Tech Giants: Analyzing Investor Pessimism...Alphabet, the parent company of Google, has faced scrutiny from various angles, including the emergence of artificial intelligence (AI) tools like ChatGPT, heightened regulatory oversight, and a slowdown in digital advertising spending. Despite being a major player in the technology industry with diverse ventures, Alphabet's stock performance has garnered more skepticism from investors compared to other prominent tech companies.
Although Alphabet has seen a modest increase of over 9% in the past 12 months, it has lagged behind its counterparts and the overall performance of the S&P 500 index.
While Alphabet is considered a solid investment, it is crucial to consider the timing of investing in the company. Despite its long-term potential, the current circumstances call for cautious evaluation.
Alphabet has been entangled in prolonged legal battles with European Union regulators for over a decade, primarily related to antitrust violations. The company has incurred substantial fines from the EU, including a $3.5 billion penalty in June 2017 and a fine exceeding $6.1 billion in September 2022. More recently, the European Commission has notified Alphabet of its breach of EU antitrust rules, specifically in the advertising technology (adtech) industry. Bloomberg has reported that the EU may impose another significant penalty, potentially surpassing $8 billion.
Apart from the financial implications, the potential requirement for Alphabet to restructure and divest portions of its adtech business to maintain operations within EU countries is a significant concern. This obstacle looms large, considering that Europe, the Middle East, and Africa (EMEA) contribute 30% of Alphabet's revenue.
Considering all these factors, it is essential to carefully assess the risks and potential consequences before deciding whether it is the right time to invest in Alphabet.
Alphabet heavily relies on Google's advertising business, which accounted for $54.5 billion out of its total Q1 2023 revenue of $69.7 billion. It constituted over three-quarters of the company's fiscal 2022 revenue, underscoring its importance to Alphabet's overall financial performance.
Despite a 2.6% year-over-year revenue increase in Q1, Alphabet experienced an 8.2% decline from Q4 2022, with Google's advertising revenue declining for consecutive quarters. Recognizing the risks associated with a weakened advertising business, Alphabet has prioritized diversifying its revenue streams, particularly through the growth of Google Services and Google Cloud. Google Cloud revenue reached $7.4 billion in Q1, up from $5.8 billion in Q1 2022, and has finally achieved profitability.
For Alphabet to ensure long-term sustainability, it must rely less on Google advertising and focus on strengthening other segments, especially Google Cloud, which currently lags behind competitors like Amazon Web Services and Microsoft Azure in market share. However, the profitability achieved in Google Cloud is an encouraging sign for investors.
Returning to the initial question of whether Alphabet is a favorable investment at present, the answer is yes for long-term investors with a substantial time horizon. Alphabet possesses the resources and resilience to withstand the challenges it faces. Concerns regarding Google search are valid but possibly overstated, as it will likely remain a significant revenue source for the foreseeable future, albeit with reduced reliance.
However, the response becomes more complex for investors concerned about short-term stock performance. The overall hype surrounding the tech industry has propelled Alphabet's stock price by over 35% year-to-date as of June 23. Nevertheless, a market pullback, not only for Alphabet but also for the tech sector as a whole, may be on the horizon.
Given the circumstances, it may be an opportune time to gradually accumulate Alphabet stock through dollar-cost averaging. This approach involves consistently investing fixed amounts over time, thereby mitigating the impact of short-term market fluctuations.
Google -> Pumping With The AI HypeHello Traders,
welcome to this free and educational multi-timeframe technical analysis .
On the weekly timeframe you can see that Google stock just retested and with a weekly bearish candle perfectly started to reject major previous structure at the $130 level.
You can also see that weekly market structure is still quite bullish, Alphabet is now retesting the 50% fibonacci retracement level and also previous weekly resistance which is now turned support at the $120 level so I simply do expect more continuation towards the upside from here.
On the daily timeframe you can see that Google stock just created and confirmed a daily head and shoulders reversal pattern so I am now just waiting for a break back above the neckline - then we would also have bullish market structure again - and then I simply do expect also a daily rally to retest the next resistance at the $130 level.
Thank you for watching and I will see you tomorrow!
You can also check out my previous analysis of this asset:
AlphabetsNASDAQ:GOOGL at another area of value. A close above $127-ish opens a window for a potential move to $142.
Always rooting for the upside.
GOOGL:A Compelling Investment Opportunity with Growth CatalystsAlphabet, with its heavy reliance on digital advertising, faces challenges during weaker economic periods. However, its recent revenue growth slowdown of 3% reflects the current macroeconomic conditions. To address this, Alphabet is implementing cost-cutting measures, including significant layoffs.
Despite these challenges, Alphabet's shares have seen a 40% increase in 2023, albeit remaining 17% below their all-time high. The question arises: Is Alphabet a good investment? The answer is a resounding yes, and here's why.
Google Search, contributing 58% of Alphabet's ad revenue, maintains an overwhelming global market share of 92.8%, while competitors like Bing struggle to gain traction. Thus, Google's dominance remains secure.
Alphabet's Google Cloud Platform (GCP) shows impressive growth, with revenue increasing by 28% year over year, outpacing Amazon Web Services (AWS). GCP's recent achievement of its first operating profit indicates further potential for increased profitability.
Alphabet's commitment to artificial intelligence (AI) is evident, enhancing search capabilities, providing real-time updates, and combating spam. The integration of AI across Workspace products and tools demonstrates Alphabet's ongoing commitment to innovation.
The Other Bets segment, including Waymo, Alphabet's autonomous driving unit, is making strides. The recent partnership with Uber expands Waymo's reach and paves the way for mass adoption of autonomous driving technology.
Despite the surge in shares, Alphabet's valuation with a trailing P/E ratio of 27.6 and forward P/E ratio of 23.2 appears reasonable, considering its dominant position and growth catalysts.
Alphabet generated $17.2 billion in free cash flow, showing a 12% increase, and maintains a robust balance sheet with $115 billion in cash and securities, enabling it to pursue new initiatives.
Considering these factors, Alphabet presents an attractive investment opportunity and can serve as a core holding in a long-term portfolio strategy.
