Alphabet Inc (GOOG) Shows Promise for Long-Term Investors despite Legal and Regulatory Pressures

1. Fundamental Stock Analysis of Alphabet Inc (GOOG)

Alphabet Inc. is primarily growth-driven. Furthermore, Alphabet's cash reserves and minimal debt underline its steady financial prowess, helping it earn one of the strongest balance sheets in the big-tech industry.

However, some external factors may potentially affect Alphabet's stock value. Firstly, Alphabet is facing intricate problems, like Google facing allegations of bullying and bribery with attempts to block app competition. Persistent lawsuits and allegations can not only mar Google's reputation but can also disparage stock performance. Secondly, a recent news indicates that ahead of the coming elections, big tech firms including Alphabet will face stringent EU regulations requiring them to clearly label political advertising. This could add to their operational costs and might slightly dampen their future earnings.

The company's earnings per share (EPS) are at $5.21, with a price-to-earnings (PE) ratio of 25.23. This ratio is relatively high, indicating that the market has high expectations of the company's future earnings growth. Based on the discounted cash flow (DCF), the inherent value of the stock is $133.11, which is slightly above the last close price of $131.45. This suggests there might be a chance of undervaluation.

2. Technical Stock Analysis of Alphabet Inc (GOOG)

The Relative Strength Index (RSI) is at 36, which shows the stock is neither in the overbought nor in the oversold zone, indicating balanced stock momentum. The stock's Moving Average Convergence Divergence (MACD) of -1.39 for the past three months suggests a bearish market trend in the short term. However, the stock currently resides above its 200-day moving average ($118.16), indicating a long-term bullish trend despite some short-term volatility.

The Average True Range (ATR) is at 2.47, suggesting the stock has low volatility. The stock's 50-day moving average ($134.81) sits above its 200-day moving average, indicating a golden cross scenario, which is generally a bullish buying signal. The support level is at $126.67, and the resistance level is at $135.49, providing potential ideal entry and exit points for traders.

In terms of market sentiment, a strong consensus of "Buy" is seen among analysts, with 26 recommending "Buy" and 1 recommending "Hold". No sales recommendations were made.

3. Future Price Predictions (Short-Term)

Within a single trading day (November 07, 2023), the Alphabet stock might perceive slight undervaluation owing to its DCF and the analyst consensus backing buy recommendations. Therefore, the stock prices might rise, taking into account the potential bounce back from the support level, provided no adverse market news affects the stock adversely.

In the upcoming week, given the positive fundamental analysis (the company’s strong financial health and growth capacity), and provided the macroeconomic conditions remain stable, the stock price might inch closer to its 50-day moving average of $134.81.

4. Overall Stock Evaluation

Despite short-term litigation challenges and regulatory pressures, Alphabet’s strong balance sheet, diverse avenues of growth, and high market expectations make it fundamentally strong. The consensus among analysts seems to recognize this as they are mainly leaning towards a "Buy" recommendation. Even though the MACD suggests a short-term bearish market trend, long-term indicators like the stock being above its 200-day moving average seem encouraging.

Given these factors, Alphabet Inc. could be considered a "Buy". It seems, both fundamentally and technically, Alphabet's stock presents a promising investment opportunity in the long run. However, short-term investors might need to be cautious owing to the potential legal and regulatory pressures Alphabet is currently facing.