Shopify Stock – Shop Stock: Google Stock: Why Its Big Run Against FANG Rivals Could Keep Going | Fintech Zoom
Alphabet Inc Cl A
Alphabet Inc Cl A
IBD Stock Analysis
- Shares consolidated and formed flat-base entry of 2,431.48
- Shares top recent high on Friday, providing earlier buy point
- Composite Rating is now 97 out of a best-possible 99 ranking
Industry Group Ranking
* Not real-time data. All data shown was captured at
1:27PM EDT on
Shares in Google-parent Alphabet (GOOGL), the IBD Stock of the Day, have rallied some 39% in 2021. But the big run of Google stock may not be over, as shares have grabbed a new entry point as its relative strength line notches new highs.
With 2021’s gain, Alphabet stock has outperformed other FANG stocks — Facebook (FB), Amazon.com (AMZN) and Netflix (NFLX) — as well as Apple (AAPL). GOOGL stock bulls trumpet a rebound in digital advertising as Covid-19 vaccinations expand, boosting global economies as industries such as travel normalize.
While the internet search business still drives advertising growth, Google also is getting a boost from its cloud computing business and video website YouTube. Unlike Netflix, YouTube’s revenue comes from advertising while it’s also building up subscription fees.
In e-commerce, Google aims to be a stronger rival to Amazon through partnerships with Shopify (SHOP) and Square (SQ).
Google Stock: Artificial Intelligence Prowess
Google stock’s strength in artificial intelligence spans digital advertising, the Google Cloud Platform, YouTube and consumer hardware products. At a Google developers conference in mid-May, the company demonstrated how it uses AI tools in a wide range of applications, including Google Workspace, Google Maps, virtual reality, voice-based search and photos.
“We continue to be impressed with Google’s technology innovation and AI leadership,” Bank of America analyst Justin Post said in a review of Google’s I/O developer conference.
Google is one of many artificial intelligence stocks to watch.
At the conference, Google also disclosed that its Android operating system for mobile devices now has 3 billion users worldwide. GOOGL stock broke out to an all-time high on April 5 after the U.S. Supreme Court ruled in Alphabet’s favor in a copyright dispute with Oracle (ORCL) involving Android mobile software.
Google stock also popped after Alphabet reported first-quarter earnings and revenue that blew past estimates. The company also authorized $50 billion in additional GOOGL stock buybacks.
GOOGL Stock Forges Flat Base
From a technical view, Google stock has consolidated and forged a flat base entry point of 2,431.48. As of June 4, it trades 2% below that proper buy point.
But Google stock at one point on Friday traded above its June 2 high of 2,393.73, giving aggressive investors an earlier buy point. GOOGL stock withstood a test of its 10-week moving average. It also is back above its three-weeks-tight entry. Shares climbed 2% Friday to close at 2,393.57.
Google stock holds an IBD Composite Rating of 97 out of a best possible 99.
The Composite Rating is a blend of the other five IBD stock ratings: the earnings per share or EPS Rating, Relative price Strength Rating, Accumulation/Distribution Rating, Industry Group Relative Strength Rating and the SMR Rating. The latter measures sales growth, profit margins and return on equity. The all-encompassing Composite Rating helps investors easily measure the quality of a stock’s fundamental and technical metrics.
Also, Google stock belongs to the IBD Leaderboard. The Leaderboard is IBD’s curated list of leading stocks that stand out on technical and fundamental metrics.
Google Growth Accelerates As Coronavirus Crisis Ebbs In U.S.
Rebounding from the coronavirus pandemic, Google’s earnings and revenue growth has accelerated for three quarters.
Google earnings under generally accepted accounting principles, also known as GAAP, rose 166% to 26.29 per share in the first quarter. That included gains on equity investments.
Gross revenue, which excludes traffic acquisition costs, jumped 34% to $55.31 billion.
The Department of Justice on Oct. 20 filed an antitrust lawsuit against Google. The Justice Department charged that Google has harmed competition and consumers by monopolizing internet search and search-related advertising. A legal battle likely will drag on for years.
According to IBD MarketSmith analysis, GOOGL stock holds a Relative Strength Rating of 76 out of a best possible 99. But its relative strength line is at new highs.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
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