Chart of the Day: Alphabet/Google Is Being Left Behind
The big search/ad company just cannot get out of its own way.
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Is there trouble brewing for Alphabet GOOGL? It sure seems that way. The market is telling us this stock is worth quite a bit less than it was when it hit all-time highs just five weeks ago.
What seems to be the problem here? Earnings were a slight miss but their dominant position is not changing anytime soon. Maybe that is the problem. The U.S. government is looking their way with a skeptical eye. The market seems to be discounting a slew of bad news, as if something ominous is going to come Alphabet's way.
For now, that means sellers are active in this stock. Alphabet is being left off the train. In fact, since last week's low in the market (August 5), this stock is barely higher. That's troubling, and frankly a slew of distribution days leading up to that reaction low (August 5) was telling us something bad was brewing.
Indicators are getting washed out. As the markets rise this stock is not participating. Money flow is poor (bottom pane), and the stock is struggling at the 200-day moving average.
Nothing positive here, unless the company is buying back stock at these low levels. That could buoy the stock and keep it afloat, but for how much longer if big money is selling?
We rate Alphabet a One in TheStreet Pro Portfolio.
More Pro Portfolio:
- We're Initiating a New Position in This Oversold Bullpen Stock
- Weekly Portfolio Roundup: Opportunity Was the Name of the Game
- We've Got the Scoop on Our Stocks
At the time of publication, TheStreet Pro Portfolio was long GOOGL
