Alphabet Inc C (NASDAQ:GOOG)
Alphabet Inc. (GOOG), a global leader in advertising services on Friday saw share prices decline on news of Citi analyst seeing a slowdown in search advertising revenues.
Analyst Comments on Alphabet Inc.
Citigroup (NYSE:C) Analyst Mark May said recent checks with two leading search engine marketing agencies suggest a
“slight deceleration in the year over year growth rate for search marketing spend” in the second quarter compared with the first. “This could be slightly below current forecasts, though how to interpret the data and what to compare it with is sometimes up for debate.” Bloomberg
GOOG Technical Analysis
GOOG opened trading on Friday at $708.65 which was down from the previous days trading of $710.36. GOOG closed trading yesterday at $691.72, equivalent to a 2% decrease from the opening price. Taking a look at the daily chart we can see the last time GOOG traded below these levels was on April 28th when it traded at $691.02 . Taking a closer look at the daily chart we can see that GOOG has been on a downward trend dating back to April 18th when it traded at $766.61. GOOG has a float of 589.93 million shares and traded 1.77 times the normal daily trading volume on Friday. For trading purposes, I would like to see GOOG open trading on Monday below $697.30 and if it does I would be looking to take a short position at the bell. My stop loss would be $1.70 from my entry position fearing anything more than that and the stock would start to fill in the gap down.
Company Profile
Alphabet Inc., incorporated on July 23, 2015, is a holding company. The Company holds interests in Google Inc (NASDAQ:GOOGL). (Google). The Company’s segments include Google and Other Bets. Google segment includes Internet products, such as Search, Ads, Commerce, Maps, YouTube, Apps, Cloud, Android, Chrome, Google Play, and hardware products, including Chromecast, Chromebooks and Nexus, which are sold by the Company. Its technical infrastructure and Virtual Reality are also included in Google segment. Google segment is engaged in advertising, sales of digital content, applications and cloud services, as well as sale of Google branded hardware. The Other Bets segment consists of various operating segments and includes businesses, such as Access/Google Fiber, Calico, Nest, Verily, GV, Google Capital, X and other initiatives.
Other Bets segment is engaged in the sale of Nest hardware products, Internet and television services through Google Fiber, and licensing and research and development (R&D) services through Verily. Google offers products, including Gmail, which is an e-mail service; Chrome, which is a browser, and Google Play, which allows access to movies, books, music and application on various devices. Google offers platforms, including Chrome OS and Android mobile operating system. The Company offers advertising solutions for businesses with a range of products across screens and devices. It delivers performance advertising and brand advertising. Its performance advertising lets its advertisers connect with users.
It offers AdWords, which is an auction-based advertising program that helps to create text-based advertisements that appear on Google Websites and the Websites of Google Network Members using its advertising programs to deliver relevant advertisements together with their search results and content. Its performance advertising also includes AdSense program to deliver relevant advertisements. Google Websites consist of AdWords; YouTube, including YouTube TrueView and Google Preferred, and properties, including Gmail, Finance, Maps and Google Play. Google Network Members’ Websites consist of AdSense (such as AdSense for Search and AdSense for Content), AdExchange, AdMob, DoubleClick Bid Manager, and other network products, including AdSense for Domains.
The Company helps brand advertisers to deliver digital videos and other types of advertisements to specific audiences for marketing campaigns. It distributes advertisements, such as the TrueView advertisements displayed on its YouTube videos. It has an advertisement technology platform for brand advertisers, agencies and publishers to help in digital marketing businesses. The Company competes with Yahoo (NASDAQ:YHOO), Microsoft (NASDAQ:MSFT), Yandex NV (NASDAQ:YNDX), Baidu Inc (NASDAQ:BIDU), Naver, WebCrawler, MyWebSearch, Kayak, LinkedIn (NYSE:LNKD), WebMD Health Corp (NASDAQ:WBMD), Amazon (NASDAQ:AMZN), eBay, Facebook (NASDAQ:FB), Twitter Inc (NYSE:TWTR), Criteo Sa (NASDAQ:CRTO) and AppNexus.