Alphabet's Stock Shows Upward Momentum Despite Mixed News Sentiment

Overview

Alphabet Inc. (ticker: GOOGL) closed at $129.40 on July 27, 2023, an increase of 0.10%. This puts the tech giant's market cap at approximately $1.65 trillion. The day ranged from a low of $128.79 to a high of $133.24. The annual high is noted as $133.24, with an annual low of $83.34. The volume of trades executed was over 43.77 million shares, compared to the average volume of roughly 34.62 million.

Fundamental Analysis

Alphabet Inc.'s EPS is at $4.4 with a PE ratio of 29.41 which is in line with the industry average. The total shares outstanding stands at approximately 12.71 billion. The company will make its earnings announcement on October 23, 2023.

The DCF value is at $131.06, slightly higher than the current price, indicating a potential undervalue. Analysts have set a high target at $190, a low target at $59, with a consensus target at $139 which is close to the median target of $140. These figures suggest a potential upside for Alphabet.

Technical Analysis

The 50-day moving average is at $122.10 and the 200-day moving average at $103.67 signifies that the stock is in an upward trend. A noteworthy aspect is the MACD for the past three months which stands at 0.163219, indicating bullish momentum.

On the other hand, its RSI14 of 67 portrays a stock that is nearing overbought territory. This denotes that investor enthusiasm has been high recently and may indicate an approaching slowdown or correction.

News Sentiment

News sentiment around Alphabet appears mixed. On one hand, there is optimism about the company's strong net cash positions and expected free cash flow, ultimately enhancing its intrinsic value.

Nonetheless, there are concerns about Alphabet's deceleration in the autonomous truck sphere and declining growth in cloud adoption, two vital areas for its future expansion. Furthermore, Google's battle over AI cloud services domination with Microsoft has yet to reflect positively on Alphabet's financial statements.

Conclusions and Forecast

For the next trading day, Alphabet's stock exhibits a sustained upward momentum with a MACD that suggests a bullish trend. The stock might close slightly higher, potentially around the DCF value of $131.

Looking at the week ahead, the direction of the stock will heavily depend on investor sentiment and market volatility. Potential investors must factor in the nearing overbought nature based on the RSI. Therefore, it is ideal to expect certain volatility with a moderate upward trend pushing the stock towards the analyst's median target of $140.

Final Evaluation

Given Alphabet's solid fundamentals and optimistic analyst targets along with mixed news sentiment, the verdict leans towards a 'Hold'. It is recommended to watch for a potential pullback due to its high RSI value before considering further investment.

However, the fundamentals of Alphabet, increased intrinsic value, and an upward trend indicate a long-term potential. Investors might find a buying opportunity if there is a temporary dip or if the company delivers positive results in its upcoming earnings report. As such, this conclusion assumes a varied mix of short-term and long-term investment strategies.