Jump to content

Alphabet outlook solid ahead of upcoming earnings


Recommended Posts

Alphabet has made huge gains over the past year, and has found a new lease on life as money flows back into growth names. But will earnings meet already-high expectations?

GoogleSource: Bloomberg
 
 Chris Beauchamp | Chief Market Analyst, London | Publication date: Monday 19 July 2021 

When does Alphabet report earnings?

Alphabet publishes its most recent earnings on 27 July.

Alphabet earnings – what to expect

Revenue is expected to rise 46% to $56 billion, while earnings per share (EPS) are forecast to rise 90% to $19.26.

Advertising revenue continues to be the main slab of revenue for Apple, allowing it to fund loss-making expansion in areas such as cloud-computing, in which it competes with Amazon and Microsoft. For Alphabet, regulatory scrutiny continues to loom large, and will continue to be a major headache in coming quarters. But while fines may keep coming, they still amount to a drop in the ocean in terms of Alphabet’s revenue, and if not accompanied with real regulatory action, will represent only a passing trouble in the longer term, an excuse for regular selloffs but not a fundamental change in direction.

Alphabet – valuation and broker ratings

Like others in the growth/tech space, Alphabet continues to trade on a relatively high price-to-earnings (P/E) ratio, at 32.11, with no dividend yield at present. Brokers rate Alphabet highly, with 16 ‘strong buys’ and 28 ‘buys’, and just two ‘hold’ recommendations.

Alphabet share price

Alphabet seems unstoppable, having enjoyed a tremendous rally since September. Dips have been bought repeatedly, and since May a steady and quiet rally has provided very little chance for dip buyers to get involved. The price sits close to a new record high, having bounced in early May from the 50-day simple moving average (SMA), currently $2470. It is unlikely that this quiet rally will go on forever, so some caution might be warranted now, but with a clear eye on the steady trend.

Google chartSource: ProRealTime

Alphabet strides ahead

Fundamentals and technicals continue to back Alphabet, with the ad business powering expansion elsewhere. Growth stocks are still in high demand, and the recent inflow back into tech stocks since May seems to suggest a return to growth stocks after the ‘value’ mania of the early part of 2021.

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • ASX: QBE INSURANCE GROUP LIMITED – QBE Elliott Wave Technical Analysis TradingLounge Greetings, Our Elliott Wave analysis today updates the Australian Stock Exchange (ASX) with QBE INSURANCE GROUP LIMITED – QBE. We see QBE continuing to rise with wave (iii)-orange, and then continuing with wave (v)-orange. ASX: QBE INSURANCE GROUP LIMITED – QBE 1D Chart (Semilog Scale) Analysis Function: Major trend (Subminuette degree, gray) Mode: Motive Structure: Impulse Position: Wave iii-grey of Wave (iii)-orange of Wave ((v))-navy Details: Wave iii-grey of wave (iii)-orange of wave ((v))-navy is unfolding to push much higher. While price must remain above 17.52 to maintain this view, because wave 4 cannot overlap wave 1. Invalidation point: 17.52 ASX: QBE INSURANCE GROUP LIMITED – QBE 4-Hour Chart Analysis Function: Major trend (Minuette degree, orange) Mode: Motive Structure: Impulse Position: Wave iii-grey of Wave (iii)-orange Details: Since the low at 15.79, wave (iii)-orange is extending, it is subdividing into wave i-grey to wave iii-grey. Basically wave iii-grey can still continue to push higher, also be ready for a push back lower than wave iv-grey after that. After wave iv-grey ends, wave v-grey will continue to complete its job of pushing higher. While wave iv-grey cannot move lower than 17.52 to maintain this view. Invalidation point: 17.52 Conclusion: Our analysis, forecast of contextual trends, and short-term outlook for ASX: QBE INSURANCE GROUP LIMITED – QBE aim to provide readers with insights into the current market trends and how to capitalize on them effectively. We offer specific price points that act as validation or invalidation signals for our wave count, enhancing the confidence in our perspective. By combining these factors, we strive to offer readers the most objective and professional perspective on market trends. Technical Analyst: Hua (Shane) Cuong, CEWA-M (Master’s Designation). Source : Tradinglounge.com get trial here! #QBE #ElliottWave #TradingLounge #ASX #ASXStocks #Stocks  
    • Ethereum has recently made significant strides, with the ETHUSD price breaking through crucial resistance levels. Below is a breakdown of the recent Ethereum price movement, whale influence, and the role of long-term holders (LTHs) in shaping the market. Key Price Levels and Bullish Trend Breaching $3,262 Resistance: Ethereum price recently surged above $3,262 as per Coinpedia Markets, marking a strong bullish movement. This breakout sets the stage for the next major target at $3,400. Next Positive Target at $3,530: If the price holds above $3,262, Ethereum could rally further to reach $3,530. The EMA50 (50-period Exponential Moving Average) also supports this upward trend, strengthening confidence in the bullish outlook. Watch for a Potential Pullback: If Ethereum price drops back below the $3,262 support level, it could signal the end of this bullish wave and lead to a downward correction. Today’s trading range is expected between the $3,200 support and the $3,460 resistance levels, providing insight into possible fluctuations. The Role of Ethereum Whales in Market Dynamics Whale Activity and Price Influence: Large investors, or “whales,” have been pivotal in driving Ethereum price upwards. Recent data indicates a surge in whale transaction volume and accumulation, both of which reflect strong confidence in Ethereum’s current rally. Significance of Whale Activity: Increased whale activity provides a solid foundation for Ethereum price, offering strong capital backing. This consistent support can foreshadow further gains for ETH, as these high-capital investors add to the rally’s momentum. Long-Term Holders (LTHs) and Ethereum Price Stability Accumulation by Long-Term Holders: During September and October, Ethereum’s liveliness metric—an indicator of active versus held coins—saw a decline, suggesting that LTHs were accumulating while prices stabilized. This accumulation can provide a stabilizing effect, helping to absorb supply and reduce volatility. Potential Profit-Taking by LTHs: Recently, however, the liveliness metric has ticked up again, indicating that some long-term holders might be taking profits. This shift could introduce additional supply, potentially moderating the current rally’s momentum and creating mild supply pressure. Outlook: Ethereum Price Prediction In the short term, the Ether Price Prediction remains optimistic, with whale activity and LTH accumulation supporting sustained growth. Yet, the possibility of profit-taking by some LTHs suggests that investors should remain cautious of potential shifts in market dynamics. As Ethereum's rally progresses, these factors will be essential for shaping ETH Coin trends and overall ethereum price movement in the coming weeks.
    • Elliott Wave Analysis TradingLounge NEO/ U.S. dollar(NEOUSD) NEOUSD Elliott Wave Technical Analysis Function: Counter Trend Mode: Corrective Structure: Flat Position: Wave (2) Direction Next higher Degrees: Wave ((2)) of Impulse Wave Cancel invalid Level: Details:Wave 2 is likely to end and price is rising in wave 3. NEO/ U.S. dollar(NEOUSD)Trading Strategy: The correction in wave 2 seems to be over so we focus on the five-wave rally of wave 3 and The price action remains in an uptrend, and we are looking for a re-entry into the trend. NEO/ U.S. dollar(NEOUSD)Technical Indicators: The price is above the MA200 indicating an uptrend, The Wave Oscillator is a Bullish Momentum. NEO/ U.S. dollar(NEOUSD) NEOUSD Elliott Wave Technical Analysis Function: Counter Trend Mode: Corrective Structure: Flat Position: Wave (2) Direction Next higher Degrees: Wave ((2)) of Impulse Wave Cancel invalid Level: Details:Wave 2 is likely to end and price is rising in wave 3. NEO/ U.S. dollar(NEOUSD)Trading Strategy: The correction in wave 2 seems to be over so we focus on the five-wave rally of wave 3 and The price action remains in an uptrend, and we are looking for a re-entry into the trend. NEO/ U.S. dollar(NEOUSD)Technical Indicators: The price is above the MA200 indicating an uptrend, The Wave Oscillator is a Bullish Momentum. Technical Analyst : Kittiampon Somboonsod Source : Tradinglounge.com get trial here!  
×
×
  • Create New...
us