The Case for and Against Alphabet Inc. (GOOGL)

Alphabet Inc. (GOOGL) is an interesting player in the Technology space, with a focus on Internet Information Providers. The stock has been active on the tape, currently trading at $970.12, down from yesterday’s close by -3.40%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

It’s important to get a feel for how any stock is actually valued on the market based on its core numbers. Alphabet Inc. (GOOGL) currently trades with a market capitalization of $662.41 Billion. That value represents a market adjusting for revenues that have been growing by 22.18 % on a quarterly year/year basis as of the company’s last quarterly report.

The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. For GOOGL, the company currently has $18.08 Billion of cash on the books. You can get a sense of how sustainable that is by a levered free cash flow of $27.64 Billion over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of $8.2 on a per share basis this quarter. Perhaps, that suggests something about why 26.88% of the outstanding share supply is held by institutional investors.

Technical Analysis

No analysis is ever complete without a thorough survey of a stock’s technical behavior. Looking at the stock’s movement on the chart, Alphabet Inc. recorded a 52-week high of $1008.61. It is now trading 38.49% off that level. The stock is trading $923.62 its 50-day moving average by -46.5%. The stock carved out a 52-week low down at $672.66.

In recent action, Alphabet Inc. (GOOGL) has made a move of +1.49% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is outperforming the S&P 500 by 13.59, and it’s gotten there by action that has been less volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 0.59% with $603.16 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of GOOGL.

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