Google Stock Triggers Sell Signals Amidst Weakening Ratings and Increased Competition

ICARO Media Group
News
04/03/2024 19h27

Investors in Google-parent Alphabet may be feeling a sense of deja vu as Google stock triggers sell signals following the company's fourth-quarter results. The stock had a remarkable rally, reaching a high of 153.78 after breaking out at a buy point of 139.42 in a cup with handle pattern before earnings. However, according to IBD MarketSurge chart analysis, the stock gapped down post-results, leading to a significant decline.

Shares of Google went on to form a flat base but experienced a sharp fall, closing 4% below the 10-week moving average. This decline caused the stock to slip below the previous handle buy point of 139.42, resulting in a loss of 10.3% and triggering the round-trip sell rule. On Monday, shares tumbled another 3% and are currently attempting to find support at the 200-day moving average. Notably, the stock has also undercut its more recent flat base on a weekly chart.

Furthermore, Google's Relative Strength Rating has been steadily declining, dropping from 91 six months ago to 73. This indicates that the stock is outperforming fewer stocks in the Investors' Business Daily database. The relative strength line also took a plunge and continues to fall after the shares gapped down on earnings on January 31.

The company's fourth-quarter sales showed growth, with revenues reaching $95 billion, a 10% increase. Earnings per share also rose by 18% to $1.93 compared to the prior-year quarter. However, Google is facing mounting competition from OpenAI, in which Microsoft holds a significant stake. Microsoft has incorporated OpenAI-developed search capability into its Bing search engine, intensifying the competition for Google.

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Please note that the information provided is based on the mentioned entities, numbers, and dates mentioned in the given text and should not be considered comprehensive investment advice.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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