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Alphabet Inc. Stock Analysis: Overbought Status and Antitrust Case Raise Uncertainty

StockInvest.us, 2 months ago

Google Fundamental Analysis

Alphabet Inc. (ticker: GOOGL), trading on NASDAQ, has a last closing price of $137.4 as of September 15, 2023. Over the trading day, Alphabet Inc. experienced a slight decrease in its stock price by $0.70 or 0.51%, ranging from a low price of $136.48 to a high of $138.5. The company's market capitalization stands at approximately $1.74 trillion. The trading volume for the day was roughly 36.19 million shares, slightly above its average volume of 29.14 million shares. The computed shares outstanding for the company are approximately 12.64 billion shares.

The company's financials underscore a positive EPS of $4.67 with a PE ratio of 29.42. Alphabet Inc. is also expected to announce its earnings on October 23, 2023. Moreover, analysts project that its discounted cash flow (DCF) is $139.07, somewhat higher than its current trading price. According to the consensus, 33 analysts categorize Alphabet Inc. as a buy, while one suggests it to hold, and another one projects it as a sell. The overall consensus is a "buy."

However, the recent news regarding Alphabet Inc.'s antitrust defense and Department of Justice's (DOJ) ongoing investigation into the search engine monopolization might trigger volatility in the stock's price. These legal factors may influence stock performance in the short to medium term.

Technical Analysis

Google The Relative Strength Index (RSI 14) stands at 74, indicating the stock may be overbought and could experience a slight pullback or correction. The Moving Average Convergence Divergence (MACD) three-month record is at 2.43, signifying possible upward momentum in the price. The 50-day Moving Average (MA) of $128.93 and the 200-day MA of $110.02, suggests an overall uptrend for the stock, as the price is above both these averages.

Investors should also consider the identified support and resistance levels at $129.78 and $138.1 respectively. A significant break in either of these extremes might forecast the next possible trend. ATR value stands at 1.90, implying the stock has been relatively volatile.

Stock Prediction

Considering the technical indicators and market consensus, Alphabet Inc.'s stock price may see slight pullback or correction in the following trading day, September 18, 2023. Continue to monitor the stock for prices near or at the support level of $129.78. For the upcoming week, positive momentum could see the price testing the resistance level at $138.1, given no substantial negative news impacts the stock.

Final Evaluation

Overall, Alphabet Inc. (GOOGL) appears to be a 'Hold' stock in the short-term due to its slightly overbought status and ongoing antitrust case which could add uncertainty and volatility. However, in the longer-term, Alphabet Inc. presents a 'Buy' opportunity considering its robust financials, positive consensus, and an uptrending price evidenced by the 50-day and 200-day MAs. As with any investment, these observations should be combined with individual research and risk tolerance.

Check full Google forecast and analysis here.