Google stock: buy or sell?
Updated on:
Nov 24th, 2020
2
Google stock brief
- Google stock rose 2.10% to close at $1,763.90 on the stock market on Tuesday.
- Price is drawing a scaled uptrend since last September with higher tops and higher bottoms. Up to date, price marked a 25.80% profit since the beginning of this rally
- Alphabet Inc. provides online advertising services in the United States, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America.
Should I buy Google stock?
All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Is $GOOGL stock a buy?
Currently, Google stock matches 2 trading strategies:
Uptrend buy setup
Google stock continues to trend higher since last September and marked a gorgeous 25.80% gain. Price marked a local bottom in this uptrend at $1,710.18 on Monday, and since then it bounced up a 3.14%. Breaking out over $1,816.89 - it's last top - will be a good entry point if Google resumes the uptrend. If you decide to enter this trade, the suggested stop loss is at $1,658.87
| Buy setup | Buy point | Stop loss | Risk |
| Uptrend buy setup | $1,816.89 | $1,658.87 | 8.70% |
ATH buy setup
All-time Highs is always an excellent buy point for those who like to buy high and sell higher. The good point of buying at all-time highs is that price doesn't have upper resistances, and usually it rises rapidly. However, you must always be aware of a possible bulls trap that may trigger your buy order and then falls sharply. That's why a stop loss is always important. Google can break to all-time highs any time soon, as it only needs to rise a 3.00%. The buy point is at $1,816.89 if you want to trade with this strategy. The stop loss would be ordered at $1,658.87
| Buy setup | Buy point | Stop loss | Risk |
| ATH buy setup | $1,816.89 | $1,658.87 | 8.70% |
Should I sell Google stock?
Knowing when to sell a stock is even more difficult than knowing when to buy it. Trading strategies let us to avoid impetuous decisions based on our sentiments or the buzz that surrounds the market. Our trading system selects very simple setups to guide us on when is a good moment to sell a stock. Be aware that these setups should not be used for selling short $GOOGL stock
As a golden rule, you should never mantain a trade that leads to higher than expected losses at the time of purchase. When to sell your stock must always be dictated by the stop-loss (automatic or manual)
Is it time to sell Google stock?
Currently, Google stock doesn't match any of our preferred sell setups, so if you hold Google stock and your operation is in profit probably is not time to sell now
Google ratings
In the last month, 15 brokerage ratings were published for Google. General sentiment is bullish, with 9 out of 15 posting positive outlooks
| Brokerage firm | Rating |
|---|---|
| Oct 30th, 2020 | |
| Credit Suisse Group | Buy |
| Deutsche Bank Aktiengesellschaft | |
| KeyCorp | Buy |
| MKM Partners | Neutral |
| Monness Crespi & Hardt | |
| Morgan Stanley | Buy |
| Oppenheimer | Buy |
| Pivotal Research | Neutral |
| Royal Bank of Canada | Buy |
| Stifel Nicolaus | Neutral |
| Truist | Neutral |
| Wedbush | Neutral |
| Nov 2nd, 2020 | |
| Argus | |
| Canaccord Genuity | |
| Nov 3rd, 2020 | |
| Smith Barney Citigroup | Neutral |
Google stock analysis
Google shares started an uptrend last September, and grew an amazing 25.80%. The price action shows higher peaks and higher troughs, and along the way gave some buying opportunities for those who wanted to enter. Latest low was on Monday, when price bounced at $1,710.18. Now, it trades in a consolidation between its last top ($1,816.89) and its last bottom ($1,710.18)
SMAs overview
Supports and resistances
The current resistance levels are:
The current supports are:
Bollinger bands
Relative strength index
The RSI dropped below the overbought level of 70 on November 6 after just crossing to the overbough zone for just one day (weak signal). The RSI value on Tuesday was 62.67. Since RSI lost the overbought zone, Google shares just changed a 0.08%
Google stock price history
Google started trading priced at an adjusted price1 of $50.05 on Aug 2004. Since then, GOOGL stock surged by 3,424.28%, with an average of 214.02% per year. An investment of $1,000USD on the IPO would have a value of $35,242.76 today.
1: Adjusted price after possible price splits or reverse-splits
Price target for Google stock
Nobody can predict how much a stock will be priced in the future. However, many stock price forecasts are published every day by banks, financial institutions and independent analysts.
Along with buy or sell recommendations, financial institutions post their price predictions based on the stock price action and the company fundamental data. Most of these estimates follow the release of new fundamental data by the company, and usually. If you are a small trader you must not buy or sell based on these predictions.
There are 15 price predictions issued for Google that average $384.40. Google closed at $1,763.90 on Tuesday, so the target price is expecting a decrease by 78.21%.
| Brokerage firm | Price target |
|---|---|
| Oct 30th, 2020 | |
| Credit Suisse Group | $1.00 → $1.00 |
| Deutsche Bank Aktiengesellschaft | $2.00 → $2.00 |
| KeyCorp | $1.00 → $1.00 |
| MKM Partners | $1.00 → $1.00 |
| Monness Crespi & Hardt | $1.00 → $2.00 |
| Morgan Stanley | $1.00 → $1.00 |
| Oppenheimer | $1.00 → $1.00 |
| Pivotal Research | $1.00 → $2.00 |
| Royal Bank of Canada | $1.00 → $1.00 |
| Stifel Nicolaus | $1.00 → $1.00 |
| Truist | $1.00 → $2.00 |
| Wedbush | $1.00 → $1.00 |
| Nov 2nd, 2020 | |
| Argus | $1,620.00 → $1,850.00 |
| Canaccord Genuity | $1,800.00 → $1,900.00 |
| Nov 3rd, 2020 | |
| Smith Barney Citigroup | $1,600.00 → $2,000.00 |
Earnings and financials
Google ($GOOGL) had the shareholders event and released the fiscal third-quarter report in late October. Google topped analysts estimates and reported a per-share earnings of $16.40, that is a 45.26% surprise versus the previous forecasts of $11.29. In addition, reported revenues were $46.2 billion versus estimates of $42.9 billion.
This compares to Earnings of $10.12 per share a year ago, so posted EPS is an increase of 62.06%. Turnover exploded a 14.01% on an annualized basis in the FQ3, from $405.0B to $461.7B last quarter.Google ($GOOGL) will host the earnings call next February. Forecasted earnings per share (EPS) for this quarter is $15.64, compared to $16.40 that was reported for Q3.
Google competitors
Google is classified inside the Internet Content & Information industry, where it has 38 industry peers.
Google major competitors are:
| Company | Market cap | Rating | Bullish ratings1 |
|---|---|---|---|
| Google ($GOOGL) | $1.2T | Buy | 9 |
| Google ($GOOG) | $1.2T | | 12 |
| Facebook ($FB) | $783.3B | Buy | 12 |
| Snap ($SNAP) | $57.3B | | 2 |
| Spotify ($SPOT) | $49.3B | Buy | 2 |
| Twilio ($TWLO) | $47.9B | Buy | 6 |
| Pinterest ($PINS) | $38.5B | Buy | 9 |
1 In the last 30 days.
Google performance
To better understand Google stock performance you must compare its gains with other related stocks in same sector or industry.. For Google, the benchmark is made against Google, Facebook, Snap, Spotify, Twilio and Pinterest.
| Company | 1m | 3m | 6m |
|---|---|---|---|
| Google ($GOOGL) | 11.00% | 7.10% | 24.20% |
| Google ($GOOG) | 6.80% | 7.90% | 24.20% |
| Facebook ($FB) | -5.20% | -5.50% | 19.70% |
| Snap ($SNAP) | 4.80% | 114.00% | 167.90% |
| Spotify ($SPOT) | -4.10% | 0.00% | 46.70% |
| Twilio ($TWLO) | -2.00% | 18.80% | 58.50% |
| Pinterest ($PINS) | 23.10% | 92.50% | 241.20% |
Important note:
The opinions published in this article are personal and not recommendations for you to buy or sell shares. The author of this paper does not have an understanding of the particular conditions of the reader, his or her own financial statements or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Opinions are published for educative purposes onlyGoogle summary
| Tuesday, November 24th, 2020 | |
|---|---|
| Open | $1727.5 |
| Close | $1763.9 |
| Day range | $1720.73 - $1766.47 |
| Previous close | $1727.56 |
| Session gain | 2.10% |
| Average true range | $45.31 |
| 50d mov avg | $1,586.17 |
| 100d mov avg | $1,563.97 |
| 200d mov avg | $1,445.82 |
| Earnings date | February 1st, 2021 |