Alphabet Inc. GOOGL Stock Analysis

Alphabet Inc. stock closed at $2,778.28/share on 10/11/2021, after displaying recent bullishness that traders & investors may want to take a closer look at.

GOOGL stock is a member of the internet industry, and owns the largest & second largest search engines in the world (Google & YouTube).

Alphabet Inc. GOOGL Stock’s Technicals Broken Down

Alphabet Inc. GOOGL Stock Technical Performance Broken Down Over The Last Year

GOOGL Stock Price: $2,778.28

10 Day Moving-Average: $2,731.15

50 Day Moving-Average: $2,788.25

200 Day Moving-Average: $2,348.65

RSI: 50.5

MACD: -11.259

Yesterday, GOOGL completed a bullish MACD crossover, while crossing their 10 Day Moving Average bullishly 3 days prior.

With a neutral RSI, Alphabet Inc. looks poised to test their 50 Day MA again, after crossing it, but not closing above it yesterday.

Their next test will be at $2,801, when they will attempt to bridge the gap down that took place back in September.

Alphabet Inc. GOOGL Stock As A Long-Term Investment

Long-term investors will find many things that they like about Alphabet Inc.’s stock, outside of the speculation behind their technologies & future products.

GOOGL’s P/E (ttm) is 29.5 & their P/B is 7.64; with a neutral Beta of 1.03.

They have Quarterly Revenue Growth (Y-o-Y) of 61.6% & 80% of shares are held by Institutional Investors.

While GOOGL does not offer a dividend yield, they have Total Cash (mrq) of $135.86B & Total Debt (mrq) of $28.1B.

Alphabet Inc. GOOGL Stock As A Short-Term Trade Using Options

Traders can take advantage of GOOGL stock’s current short-term momentum, while avoiding broader market volatility by using options.

I am looking at the in-the-money $2,790 & $2,785 strike price calls with the 10/15 expiration.

For puts, the $2,800 contracts have good open interest & are in-the-money, and the $2,805 puts also look appealing, although less liquid.

Tying It All Together

Overall, GOOGL stock looks appealing to both traders & investors alike.

For a technology company, their valuation is very fair, and their balance sheet figures look much better than other stocks.

In the near-term, their current momentum looks set to keep them climbing higher, although broader volatility as well as earnings calls beginning this week may hinder that growth.

This makes it even more important to have proper hedges established in the near-term.

Traders & investors alike should take a closer look at Alphabet Inc. stock.


Leave a Reply

Your email address will not be published. Required fields are marked *