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Alphabet, the latest FANG stock to have posted a profit, recorded the weakest rebound among peers after the December low.
The long-term chart also shows the beginnings of a head and shoulders training, says Newton. This pattern is formed when a high peak then a low peak suggest the end of an uptrend. According to Newton, Alphabet should be less than $ 977 to confirm this trend.
"The bottom line is that the movement has rebounded strongly, while the overall trend of the stock over the past year has been very stagnant, so I would rather wait and buy less than $ 1,050 instead of to run after him, "Newton said.
Alphabet, which publishes its results Monday afternoon, should lose 7% before reaching the level of purchase of Newton.
John Petrides, Portfolio Manager at Point View Wealth Management, is more optimistic about Alphabet's outlook. He says the profits could give the stock more space to work.
"The stock has risen sharply after the rally on Christmas Eve here, but I think it could stay longer given its growth rate.For 35 consecutive quarters, Google has seen a growth in the number It's incredible, "Petrides said on" Trading Nation "on Friday.
Petrides said his company was "the ideal place for e-commerce and digital advertising". It should therefore benefit from the same tailwind that had allowed Facebook to spread in the last quarter. It also monitors traffic acquisition costs and their impact on margins as well as how Alphabet plans to spend its free cash flow.
Disclosure: The customers of Point View and Petrides have holdings in Alphabet.
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