Alphabet Inc. (GOOGL) Shows Strength Amidst Market Volatility, 2 weeks ago

Google Technical Analysis

Alphabet Inc. (GOOGL) closed at $182.15 on June 28, 2024, declining by 1.76% (a loss of $3.26). The stock's price fluctuated between $181.96 (low) and $185.13 (high) during the last session. GOOGL is close to its 52-week high of $186.05, indicating recent upward momentum. The Relative Strength Index (RSI14) at 65 suggests that the stock is approaching, but not yet in, the overbought territory.

GOOGL's 50-day moving average stands at $171.51, while its 200-day moving average is $147.50, showing a solid uptrend over the medium and long-term horizons. The Moving Average Convergence Divergence (MACD) of 1.28312 supports the bullish trend, as does the higher-than-average volume of 29.12 million compared to an average of 26.35 million. Support and resistance levels are currently at $179.63 and $183.88, respectively, with a stop-loss set at $177.23.

For the next trading day (July 1, 2024), the technical indicators suggest a possibility of a slight pullback given the close proximity to the resistance point and the RSI nearing overbought levels. However, over the upcoming week, GOOGL may move sideways or exhibit moderate gains, especially if it successfully breaches the $183.88 resistance.

Fundamental Analysis

Alphabet Inc.'s market capitalization stands at $2.26 trillion, reflecting its stature as a mega-cap company within the tech industry. The company's earnings per share (EPS) is $6.53, and it has a Price-to-Earnings (PE) ratio of 27.89, which is relatively high but consistent with its robust growth profile. The upcoming earnings announcement on July 23, 2024, is a key date to watch.

Google The discounted cash flow (DCF) valuations estimate GOOGL’s intrinsic value at approximately $201.84, suggesting current undervaluation with the potential for price appreciation. Analyst sentiment toward GOOGL is notably positive, with a consensus median price target of $157.50 and a high target of $225. The sentiment indicators reveal strong buy ratings, with one strong buy, 32 buys, four holds, and no sell ratings.

Long-term Investment Potential

Alphabet Inc. is fundamentally strong, with a dominant position in key tech sectors, including search, advertising, cloud services, and artificial intelligence. Recent articles highlight Alphabet’s potential as a growth stock capable of delivering significant long-term returns. Specifically, its advancements in AI and transformative technologies position it well for sustained growth over the next decade.

The mention of AI and high-growth stocks implies that Alphabet is seen as a strategic long-term investment, likely to benefit from industry trends and technological advancements. Furthermore, the ongoing rollout of hybrid vehicle models and other frontier tech spaces present additional growth avenues for Alphabet.

Overall Evaluation

Based on the technical and fundamental analysis, Alphabet Inc. appears to be a 'Hold' candidate. The technical indicators show positive momentum but suggest caution due to its proximity to the resistance level and near overbought RSI. Fundamentally, Alphabet's intrinsic value, strong market position, and favorable long-term outlook make it a solid investment, although currently priced near its year high implies limited short-term upside. Investors might find it prudent to hold existing positions while awaiting further market developments or better entry points post-earnings report in July.

Check full Google forecast and analysis here.