Alphabet Inc. Class A

Alphabet Inc. Class A (NASDAQ: GOOGL) is a holding company of Google, the Internet media behemoth. Google accounts for 99% of Alphabet's revenue, with internet ads accounting for more than 85% of that.

Key Highlights:

• As a result of various circumstances of the company, including increased competition, the revenue growth rate may slow down in future. Also, changes in device mix, geographic mix, and ongoing product and policy changes may impact its ad revenue growth rate.
• The company's ongoing investments in new businesses and services are inherently risky, which can divert management attention and adversely impact the financial position.
• The company's annual revenue in FY21 (ended December 31, 2021) was USD 257.64 billion compared to USD 182.53 billion in FY20.
• The RSI of the stock is ~57.32, which indicates a bearish momentum.
• The stock is leaning towards the higher band of the 52-week range of USD 3030.93 to USD 1990.23, moving towards the nearby resistance.

Stock Recommendation

Analysing the financial numbers, macro risks, anticipated margin pressure, and the stock's movement touching its near resistance are giving bearish indicators. Hence we suggest the investors keep an eye on the stock before adding it to their portfolio. We recommend a "Watch" rating on the stock at the closing market price of USD 2784.02 as of February 07, 2022.

1-Year Technical Price Chart (as on February 07,2022). (Source: REFINITIV, Analysis by Kalkine Group) 

*The reference data in this report has been partly sourced from REFINITIV.