Alphabet share price, Google’s parent company, slid on Monday’s trading as the company’s overall revenue missed forecasts. The newly-appointed Chief Executive Officer Sundar Pichai reported that the company’s revenue only clocked in at $46.08 billion for the quarter. The consensus was for a $46.92 billion figure.
However, a closer look at the numbers reveal that Alphabet still had a solid fourth quarter. Earnings for Q4 2019 rose by 20.2% from 2018 to $15.35 per Alphabet share price. It also topped expectations at $12.53 per share.
For the first time, Alphabet also announced its revenue for YouTube and Cloud. YouTube generated $4.72 billion which translated to a 31% annual growth rate. Meanwhile, Cloud was at $2.61 billion, up 53% from the year before. To put it into perspective, Amazon’s cloud computing business generated $7.4 billion for the same period. It is currently the largest in the world but analysts cite that Google Cloud is growing at the faster pace.
Following the announcement, Alphabet share price dropped by 1.48% to $1,432.78. However, the stock quickly recouped its gains yesterday as market sentiment improved. Along with most stocks on the Nasdaq, Alphabet share price rose as fears of the coronavirus abated. The PBoC’s move to inject $170 billion into the economy highlighted the Chinese government’s commitment to contain the spread of the virus. Consequently, it helped ease risk aversion and allowed for most stocks to finish yesterday’s trading in the green.
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Technical Outlook for Alphabet Share Price
On the daily time frame of GOOGL, we can see that the stock finished around its record-highs yesterday. If market sentiment continues to improve, it is not difficult to see the stock trade beyond $1,502.11 and set new highs. On the other hand, if risk aversion dominates trading, we could see the stock trade lower. There is near-term support around $1,427.00 where it previously bottomed on January 27 and January 31. If it does not hold, we could see it trade even lower to $1,396.00 where it could test trend line support.