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Technical view: Alphabet Inc. (GOOGL)

Technical view
 

GOOGL is in stage #2. and extremely undervalued. The stock is recovering from the recent bear market very fast. It reached its intermediate resistance, but it seems to have the momentum to breach it. Despite all bearish talks, GOOGLE is improving its finances, and cutting costs, and that is what investors like. It will have eventually a very positive impact on the stock price. During 2020 and 2021 the company over-hired its staff so, now it is time to cut unnecessary employees. People think that this is bad for the company and the economy, but in 2020-2021 the hiring spree was unusual and extreme. The company is just returning to its normal employment levels.

 
Technical view weekly
 

Google sports a growing revenue. You can see only a few drops during 2020 and 2022. But at the end of 2022, we could see its revenue back up and higher. Its 5-year average revenue growth is at 18.66% and that is really good for a mature tech company.

 
Technical view weekly
 

Free cash flow is also growing though in 2022 we saw a slowdown. It is recovering since then:

 
Technical view weekly
 

The company has plenty of cash on hand and very little debt, although lately, we can see the cash going down. That can be a result of investments or R&D expenses.

 
Technical view weekly
 

So, let’s check the expenses of the company. We can see rising expenses at R&D. That could be caused by investments in AI development.

 
Technical view weekly
 

Google increased shares outstanding significantly in 2014. Since 2019, the company started buybacks and slowly decreased the shares outstanding. We can see a jump in the last quarter of 2022. Let’s see if it is just a temporary thing or if the company will be issuing more shares and diluting shareholders.

 
Technical view weekly
 

Fundamentally, the stock is very undervalued, so this is your opportunity! Do not miss it, it may not happen again.

 
Technical view weekly
 

Technical view weekly
 

The stock is now AGGRESSIVE BUY
 

This post was published in our newsletter to our subscribers on Saturday, April 22nd, 2023. If you want to learn more about our stock technical analysis subscribe to our weekly newsletter.
 





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