Alphabet Inc.'s Stock (GOOG) Showing Positive Signs, Predicted to Move towards $138 Range

Technical Analysis

Alphabet Inc., trading under the ticker GOOG, is currently on the NASDAQ exchange with the last close on August 30, 2023, at $136.93. The price range for the day was fairly tight, with the low and high price at $135.03 and $137.25—respectively, but it did record a positive change of 1.06% ($1.44) for the day.

In the past year, the lowest that the GOOG's share price has gone is $83.45, with the highest being $137.29. This indicates that the stock is currently trading near its 52-week high. The average trading volume stands at 23.84 million shares, with the trading volume during the recent closing at 20.80 million shares.

Looking at the moving averages, the 50-day Moving Average (MA) is $126.11, which is appreciably lower than the last closing price. Similarly, the 200-day MA is $108.44, significantly below the current trading price. These indicators show that the stock is on an upward trend.

The Relative Strength Index (RSI14) of 65 is near the upper end of the scale, suggesting the stock is somewhat overbought. Meanwhile, the 3-month Moving Average Convergence Divergence (MACD) stands at 1.19, signalling bullish momentum. The Average True Range (ATR) of 2.30 hints at moderate volatility.

The support level is currently at $129.66. However, no specific resistance level is noted. Thus, it might indicate that the stock has potential for an upward climb if market conditions remain favorable, and the stop-loss level of $132.55 suggests where to position in case of a downturn.

Fundamental Analysis

The market capitalization of Alphabet Inc. stands at $1.72 trillion, underpinned by 12.57 billion shares outstanding. The Earnings Per Share (EPS) sits at $4.74 and the Price to Earnings (PE) ratio stands high at 28.89.

Market sentiment towards the stock is generally positive with a consensus rating of 'Buy'. Adding credibility to this, out of 28 analysts, 26 recommend 'buy', while one recommends 'hold'. Moreover, the target prices given by analysts vary from a low of $115 to a high of $312 with a target median of $145 and a target consensus of $148.91.

The company has an upcoming earnings announcement scheduled for October 23, 2023. The discounted cash flow (DCF) model shows a value of $138.59, which is marginally above the recent closing price.

News Analysis

Recent news mentions of Alphabet Inc. present a mix of updates about the company. Reports suggest strong earnings and upbeat guidance have driven the company's share price to 52-week highs. The company is also playing a prominent role in upcoming AI summits and is consistently updating its services to improve customer experience. The news of Google, an Alphabet Inc. entity, expected to unveil new phones and watches at an October 4 event could spark additional interest and potentially have a positive impact on the stock.

Predictions & Evaluation

Considering these technical and fundamental factors and recent news, the price prediction for the next trading day (August 31, 2023) is slightly positive, likely moving within the $137-$138 range. In terms of the prediction for the next week, given the company's strong momentum, the price could trend above the current DCF value towards the analysts' median target of around $145, barring any significant adverse market events.

Evaluating the strong technical uptrend, the positive fundamental elements, and market inclination towards a 'Buy' consensus, the final evaluation for Alphabet Inc. (GOOG) comes out as 'Buy'. However, investors should keep a watch on the high RSI indicating overbuying and consider their risk appetite due to moderate volatility before making investment decisions.