Alphabet (Nasdaq: GOOG) stock price continued to drop even after a top and bottom line beat in the recently released earnings report. Alphabet is the parent company of Google and has a diverse revenue stream spread across search engines, social media, and cloud technologies. The company’s stock is currently 32% down from its 2021 peak.
On Wednesday, Google shares fell by 0.13% and closed the day at $103.71. This resulted in an overall weekly drop of 1.61% after three consecutive green weeks. On Thursday, the stock rose in the pre-market and changed hands at $104.
In its Q1 earnings report, the Google parent company reported a revenue of $69.79 billion. While the figure was more the Refinitive’s estimate of $68.95, the net profits of the company still decreased from $16.44 billion to $15.05 billion. Alphabet stock price initially went up 3% but then closed the day with a 2% drop.
The company also authorized a $70 billion buyback this month. The buyback will include both the Class A and Class C types of stock. Google’s rivals, Microsoft and Facebook, have also reported strong earnings in their latest reports. However, the positive effect of these reports was offset by the growing banking concerns in the US.
The following NASDAQ: GOOG chart shows the clear levels of supply and demand on the chart. The most critical level on the chart is the $100-$101 region, which is also a key psychological level. This region’s confluence comes from the presence of a strong resistance with the 200-day moving average.
In the coming days, I expect a retest of the 200-day moving average, which currently lies at $100.68. This will be a key retest as a breakdown will make Alphabet stock price forecast very bearish. In such a scenario, bears may target the $85.5 level, which is almost 20% down from the current level.
In the meantime, I’ll keep sharing updated outlook on NASDAQ: GOOG in my free Telegram group that you’re welcome to join.
This post was last modified on Apr 27, 2023, 14:33 BST 14:33