Shares of Alphabet Inc. are traded near a monthly maximum, strengthening since the end of August. Over the past three months, the emitter’s quotes grew by 11.5%. Despite the twofold growth rate of profits and diversification of sources of income, numerous accusations of breach of confidentiality, control of search traffic, overpricing of advertising, and litigation remain a limiting factor in the growth of the company’s shares.
Last week, Alphabet Inc. share price increased by 1.37%. S&P500 went up by 1.79% within the same period. Yesterday it was announced that there was a 50 state investigation into Google. Most likely there will be bad news that could create price drops that could be be opportunities for investors.
50 State Investigation
Fifty state attorneys, led by Texas, have opened an investigation into Google’s “potential monopolistic behavior.”
This announcement follows one of the country’s separate groups Friday which revealed a Facebook FB investigation, + 0.68% market dominance. Both investigations expand the antitrust oversight of large technology companies beyond federal and congressional investigations and enforcement actions by European regulators.
Google’s parent company, Alphabet GOOG, -0.04%, has a market value of more than $ 820 billion and controls so many aspects of the internet that it is quite impossible to surf the web for a long time without experiencing at least one of its services. Google’s dominance in online search and advertising enables it to target millions of consumers for their personal data.
Google expects state authorities to ask companies about similar investigations in the US earlier and internationally, senior vice president of global affairs Kent Walker wrote in a blog post Friday.
Critics often refer to Google’s 2007 acquisition of the online advertising company DoubleClick as important to the dominance of its advertisements.
European antitrust regulators slapped Google with a $ 1.7 billion fine in March for including unfair exclusivity clauses in contracts with advertisers, which hurt competitors in the online advertising business.
One outcome that might be explored by antitrust regulators is to force Google to spin off search as a separate company, experts say. Regulators can also focus on areas such as the popular Google YouTube video site, the acquisition achieved by Google in 2006.
Joining Paxton, a Republican, in the investigation is the attorney general from almost all US states and the District of Columbia.
Google has long argued that even though its business is large, they are beneficial and beneficial to consumers.
If the price consolidates above the resistance level of 1215.00, one should expect the company’s shares to grow. Potential profits should be locked in by orders at 1250.00, 1280.00, and 1300.00. Stop loss – 1180.00.
If the price consolidates below 1165.00, one may consider selling #GOOG. The moving potential is aimed at the area of 1100.00–1075.00. Stop loss – 1200.00.
Implementation period: 3 days.
Support and resistance
The company’s shares continue to be traded in flat. No single direction tendencies are observed. At the moment, the following key levels of support and resistance can be distinguished: at 1165.00 and 1215.00, respectively. #GOOG shares have the potential for further growth.
Indicators show the strength of the buyers: the price has consolidated above MA(200), and MACD is in the positive zone. Still, positions may be opened from key levels.
Comparing company’s multiplier with its competitors in the industry, we can say that #GOOG shares are neutral.
Support levels: 1165.00, 1125.00, 1075.00.
Resistance levels: 1215.00, 1260.00, 1290.00.
Evidence-based financial writer with 9 years of experience specializing in earnings, economic data coverage, and bond markets. I combine fundamentals, technicals, and macro to identify low-risk, asymmetric opportunities.