Chart of the Day: Alphabet Is a Steady Mover
There may not be much fanfare with this FANG name but it remains near all-time highs.
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With all the hype created from AI and the companies providing this new and exciting service (like Nvidia NVDA), other names have fallen off the radar. Let's understand this, though: The AI revolution was probably started by Alphabet/Google (GOOGL), they have been doing it for years.
Of course, re-creating the scenario is another story, and many investors have been worried the big search/advertising company may be left behind. After all, when you have competitors such as Microsoft MSFT, Apple AAPL and even Amazon AMZN nipping at your heels then you had better be ready to fight.
Last quarter's earnings from Google were very strong as they also announced a huge share buyback. That is putting a nice floor underneath the stock. As the implied volatility wears off (as often happens after earnings) we see how the stock moves without any influences. So far, so good, from our perspective.
Since breaking out from a range in April (earnings-driven) Google has been moving steadily higher. With a series of higher highs, higher lows the textbook uptrend is intact.
Moving Average Convergence Divergence (MACD) is about to cross for a bullish signal, and stochastics are strong, which indicates bullish momentum. With the stock right near all-time highs we see more upside here once big investors see how much of a bargain Google is relative to its peers, and they realize the AI phenomenon is big with Alphabet.
We rate Google a One in TheStreet Pro portfolio.
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At the time of publication, TheStreet Pro Portfolio is long GOOGL.
