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Alphabet Explodes Higher

ByTim Knight
Published 02/01/2022, 04:52 PM
Updated 07/09/2023, 06:31 AM

Well, any hopes we bears had about Alphabet Inc Class A (NASDAQ:GOOGL) re-igniting the bear market have been laid waste. The stock is absolutely exploding higher by triple digits, and it has sliced through virtually the entirety of its (former) topping pattern.

GOOGL Daily Chart

Even with Google’s breathtaking ascent, the NASDAQ 100 Futures still has a massive top in place (and, yes, the NQ below does take into account GOOGL’s after-hours explosion). All the same, this is definitely another stab in the heart of the baby bear cub that was frolicking around happily as recently as Friday morning.

NQ 4-Hour Chart

Latest comments

Legal monopolies are legal
Lookin like speculation to me
thank you for being a realist
Just buy good companies tim, no need to be a bear when these businesses are monopolies
All of the mega-caps should be having blowout profits - with Fed interest rates still at 0 and corporate debt to fund growth is at all-time highs - so it's like hitting fish in a barrel. The Major Major question will be .....will they be able to keep profits growing at these levels once the fed switches off the QE taps and starts increasing rates / selling off its balance sheet?? Very very very unlikely - and stock markets hate nothing more than sliding profits / uncertain future forecasts. The thing is the Fed loves high stock prices as most of the board have millions of their own personal wealth invested - so drawing the bubble out as long as possible. The Fed is willing to let the guy on the street burn with inflation as they make more personal profits. What is it now - 3 Fed Board members having to 'retire' early after buying or selling stocks just before major fed announcements???
Why is it unlikely? Its not like any of these megacap stocks have debt. Quite the contrary they have huge cash reserves. And its not like their profit centers are shrinking. Again quite the contrary. Well then their PE must be crazy right? It must come down with the fed raising. Maybe but google is 26 times earning which for a company with its cash reseves and growth is cheap.
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