Sign InAlphabet Inc. Stock Analysis: Steady Performance but AI Concerns Loom
Summary
Alphabet Inc.'s stock has shown steady performance and is currently trending upwards, with analysts recommending a 'Buy' rating and a target price of $140, though concerns about reliance on AI and potential economic volatility should be considered. (Analysis conducted on October 24, 2023)
Fundamental Analysis
Alphabet Inc.'s current last close price stands at $136.50, having registered a slight change of $0.90 representing a 0.66% increase over the previous trading day. The stock remains buoyant within a range, with a low of $133.95, and a high of $137.66. The shares have marked an annual high of $141.22 and plunged to an annual low of $83.34.
Although the stock fell short of the year's peak, its performance was steady compared to the year's lowest. Alphabet Inc. boasts a massive market capitalization of approximately $1.73 trillion and a significant volume of around 23.94 million shares. When considering the average volume of 26.44 million shares, the trading activity was somewhat subdued.
As per RSI14, which stands at 60, the stock can be said to be in neither overbought nor oversold territory. The 50-day moving average (MA) is $134.16, and the 200-day MA is $115.57, which shows that the stock is currently trending upwards. A positive MACD (3-month) of $1.56 also suggests a bullish trend.
Based on the discounted cash flow (DCF), which is $138.16, the stock seems to be slightly undervalued at the current price. Analysts' median target price for the stock is $140, indicating expected growth. The consensus from analysts gives a 'Buy' rating with 33 buys, 2 holds and 1 sell. It is noteworthy that they recommend 'Buy' even with an EPS of $4.73 and a PE ratio of 28.86.
Expected earnings announcement scheduled for October 24, 2023 can impact the share price.
Technical Analysis
GOOGL has shown steady performance with support at $129.78 and resistance at $137.4. The stock's stop-loss level is $131.05 and with an Average True Range (ATR) of approximately 2.15 the stock's price movement has demonstrated moderate volatility.
News Analysis
Recently, concerns have been raised about Alphabet's reliance on Artificial Intelligence, with MNTN CEO Mark Douglas warning the technology as a risk to Google. This could potentially weigh on the company's future prospects given that AI is a core component of Alphabet's business strategy.
On the other hand, Alphabet has been identified as a potentially attractive tech stock ahead of its earnings announcement. However, concerns about the economy have been raised and its effect on Google's search might cause volatility in the stock. Yet, the earnings season event has been primarily positive till now, indicating that Alphabet's results could be promising on October 24.
Stock Prediction and Conclusion
Combining the data with appropriate weights, the stock has maintained a steady upward trend, but recent news events might affect the stock's performance. For the next trading day on October 24, 2023, if the earnings report is positive, it could push the stock towards the analysts' consensus target price of $140.11. In the upcoming week, keeping in view the earnings report and the overall positive tech earnings season, the stock might see growth.
The fundamental, technical data, and news analysis indicates Alphabet Inc. could be a potential 'Buy'. This is based on its market cap, volatility, consistent upward moving averages, positive earnings outlook, and the consensus from analysts. However, investors should also consider any potential risks associated with AI technology and potential economic volatility.
