Sign InAlphabet Stock Analysis: Bullish Long-Term Trend Despite Recent Challenges
Summary
Alphabet Inc. (GOOGL) experienced a slight decrease in volume compared to the average, with a stock price of $124.46 on October 30, 2023; the stock is in a bearish short-term trend but a bullish long-term trend, with a potential price reversal predicted due to an oversold market condition and positive sentiment from analysts, although recent news indicates some concerns and challenges for the company's growth, investors can expect a short-term price correction up to the 50-day moving average level and should closely monitor news and market performance before making investment decisions.
Company Overview
Alphabet Inc. (GOOGL) is listed on the NASDAQ exchange and holds a market cap of $1.56 trillion. With 12.57 billion shares outstanding, Alphabet experienced a volume of 25.96 million on the last close on October 30, 2023, slightly lower than the average volume of 26.94 million. The company's year low and high values stand at $83.34 and $141.22, respectively.
Stock Performance Analysis
On October 30, 2023, Alphabet stock closed at $124.46, a change of $2.29 (1.87%) from the previous trading session. The trading day saw a low of $122.75 and a high of $125.4. In terms of resistance and support levels, the stock has a resistance level of $125.61 and a support level at $122.28.
The stock's 50-day moving average stands at $134.08, indicating a bearish short-term trend as the stock is trading below this average. Similarly, the 200-day moving average is $116.59. The fact that the stock is trading above this longer-term average suggests a bullish long-term trend.
The relative strength index (RSI) is currently at 30. An RSI below 30 generally indicates an oversold market condition and could predict a potential price reversal or a new uptrend, although this is not guaranteed. The MACD for the 3-month period is 1.79, which may suggest a bullish trend.
Fundamental Analysis
The company's PE ratio stands at 23.84, with an EPS of $5.22. The discounted cash flow (DCF) value suggests a fair stock value of $126.12. Given the recent close price, this indicates the stock may be slightly undervalued.
The latest earnings announcement on October 24, 2023, seems to have influenced the current price performance. According to consensus data, the sentiment towards Alphabet is largely positive, with more analysts categorizing it as a "Buy."
News Analysis
Recent news highlights a few points of concern for investors, such as slower growth in the cloud division. However, there is also optimism about Alphabet's future growth based on the strong performance of its advertising services stimulated by the core parts of its business.
Price Predictions and Recommendation
Alphabet's stock has been set with a median target of $140, a high estimate of $210, and a low estimate of $59 by analysts. Considering the recent market and news trends, one can expect a short-term price correction up to the 50-day moving average level.
For the next trading day on October 31, 2023, considering support, resistance levels, DCF, and RSI, the stock price may fluctuate within $122.28–$126.12. For the upcoming week, the 50-day moving average of $134.08 will act as a key resistance level.
Despite challenges, Alphabet's fundamentals remain strong, and the business's strength bolsters it. Thus, the stock is graded as a "Buy." This conclusion is further supported by the analyst consensus to buy the stock. However, potential investors are advised to closely monitor news relating to Alphabet and its market performance to make informed decisions.
