Google stock: buy or sell
Updated on:
Jan 21st, 2021
2
Google stock brief
- Google skyrocketed a 5.36% after making new all-time highs on Wednesday
- The price is currently above the upper Bollinger band, which is usually an indicator of a near-term correction
- On Wednesday broke out above its latest top at $1,843.83
- KeyCorp posted a buy rating for Google on Tuesday, targeting $2,060.00
- 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?
Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. 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?
In the current situation of Google there is just one buy setup eligible:
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 shares price doesn't struggle with upper resistances, and usually it scales quickly. However, you must always be aware of a possible bulls trap that may trigger your buy order and then drops sharply. That's why a stop loss is always important. Price is now at 1.05% of all-time highs and it can breakout at any time, so if you want to trade this setup it's recommended to setup your order at $1,899.72. The stop loss would be set at $1,709.75
| Buy setup | Buy point | Stop loss | Risk |
| ATH buy setup | $1,899.72 | $1,709.75 | 10.00% |
Should I sell Google stock?
Do you know when is it time to sell Google?. Just as when we have to buy shares, deciding when is the best time to sell is not a whimsy decision, and we must adhere our own trading strategy. Our trading system selects very simple strategies to guide us on when is the best moment to sell a stock. Be aware that these strategies should not be used for shorting Google stock
As a golden rule, you should never hold an investment that generates losses greater than those expected by the time of purchase. The moment to sell your stock always has to 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, 5 brokerage ratings were published for Google. General sentiment is bullish, with 3 out of 5 posting positive outlooks
| Brokerage firm | Rating |
|---|---|
| Dec 23rd, 2020 | |
| The Goldman Sachs Group | |
| Dec 31st, 2020 | |
| Robert W. Baird | Neutral |
| Jan 5th, 2021 | |
| Morgan Stanley | Buy |
| Jan 15th, 2021 | |
| Moffett Nathanson | Neutral |
| Jan 19th, 2021 | |
| KeyCorp | Buy |
Google stock analysis
$GOOGL at new Highs
On Wednesday, Google hit new all-time highs (ATH) again at $1,899.72. Previous highs were in early December
SMAs overview
Supports and resistances
Price is at highs and there are not upper resistances.
The current supports are:
Bollinger bands
The distance between the upper and lower bands is 4.86%, and this means that price volatility is low. Reduced volatility is often the antecedent to a sudden movement (up or down), so we must be alert and manage our buy or sell orders correctly
Relative strength index
The has been between the levels of 70 and 30 for some weeks, and therefore, without this indicator really being helpful in making any decisions.
Google stock price history
Google went public priced at an adjusted price1 of $50.05 on Aug 2004. Since then, GOOGL stock surged by 3,656.38%, with an average of 228.52% per year. If you had invested thousand dollars in Google stock on Aug 2004, it would worth $37,563.84 today.
1: Adjusted price after possible price splits or reverse-splits
Price target for Google stock
How much a stock will be priced tomorrow or next week is quite unpredictable. Banks and financial organisations issue their analysis predicting how a particular stock will performance in the future.
The following table shows the price target released by brokerage institutions for the last 30 days. If you are a small trader you don't have to invest based on these price targets.
Averaging all price targets exposed below, the estimated price for Google stock is $2,092.00. That is a 11.27% than the current price ($1,880.07).
| Brokerage firm | Price target |
|---|---|
| Dec 23rd, 2020 | |
| The Goldman Sachs Group | $2,250.00 |
| Dec 31st, 2020 | |
| Robert W. Baird | $2,000.00 |
| Jan 5th, 2021 | |
| Morgan Stanley | $1,880.00 → $2,050.00 |
| Jan 15th, 2021 | |
| Moffett Nathanson | $1,900.00 → $2,100.00 |
| Jan 19th, 2021 | |
| KeyCorp | $1,970.00 → $2,060.00 |
Earnings and financials
Last October, Google ($GOOGL) hosted the quarterly earnings call and presented the report. Google reported earnings of $16.40 per share on sales of $46.2 billion. The consensus earnings estimate was $11.29 per share on revenue of $42.9 billion.
In comparison, the EPS for the same quarter last year was $10.12, so current EPS means a gain of 62.06%. Looking at revenue, figures exploded a 14.01% compared to $405.0B same quarter a year ago.Google ($GOOGL) will host the earnings call next Monday. Wall Street analysts predict of $15.80, that is a 3.66% lower than previous quarter.
Google performance
| Company | 1m | 3m | 6m |
|---|---|---|---|
| Google ($GOOGL) | 7.70% | 23.40% | 20.80% |
Please read:
The viewpoints written in this post are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this document does not know the particular circumstances of the reader, his or her own finances or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Comments are published for education motives onlyGoogle summary
| Wednesday, January 20th, 2021 | |
|---|---|
| Open | $1826.37 |
| Close | $1880.07 |
| Day range | $1819.51 - $1899.72 |
| Previous close | $1784.47 |
| Session gain | 5.36% |
| Average true range | $48.25 |
| 50d mov avg | $1,759.68 |
| 100d mov avg | $1,652.16 |
| 200d mov avg | $1,538.15 |
| Earnings date | February 1st, 2021 |