Is Alphabet Stock a Buy or Sell Before the Release of Consumer Devices and the Cloud Conference?

Alphabet stock NASDAQ:GOOGL

Alphabet stock (NASDAQ:GOOGL) was trading at 98.70 as of 03:16 PM EDT by market close.

How resilient is Alphabet stock (NASDAQ:GOOGL) to a business slump compared to other technology businesses amid mounting concerns about a U.S. recession? That is a crucial query for investors interested in GOOGL stock. Alphabet’s (NASDAQ:GOOGL) technical ratings have declined. On September 23, Google shares fell to a 52-week low of 98.74.

The company will introduce new consumer electronics on October 6 during the “Made by Google” event, which could act as a boost for Google shares. The Google Pixel Watch, the Pixel 7 and Pixel 7 Pro smartphones, and new Nest home gadgets are among the most anticipated pieces of new hardware.

Google; Unstoppable In The Long Run

From October 11 to October 13, Google’s cloud computing division hosts its annual customer conference. The Money 20/20 Fintech Conference is scheduled for Las Vegas from October 23 to 26. After the market closed on July 15, the internet giant finalized a 20-for-1 split for Alphabet shares. Since the stock split, the order to provide the best stock has decreased by around 11%.

As YouTube and its cloud computing division fell short of expectations, Alphabet posted June-quarter earnings and revenue that fell short of Wall Street targets. However, views edged out Google’s primary digital advertising business.

In the second quarter, Alphabet spent $15.19 billion on the repurchase of Google shares, a 19% increase over the same period last year. Over the past 12 months, the market leader in internet search has repurchased $54.58 billion in Google stock.

Alphabet wants to grow its advertising business by focusing on internet searches for online retailers. It also aims to weaken’s (NASDAQ:AMZN) monopoly on product searches.

S&P 500 vs. Alphabet Stock

Analysts predict that Google’s internet search business will do better than other forms of advertising, such as social media. The Performance Max advertising platform has been launched by Google. In YouTube, internet search, display, Discover, Gmail, and maps, purchasing is automated. Advertisers can manage campaigns across the whole Google ad inventory with Performance Max. According to Google, advertisers who use the tools increase the conversion rate of browsers into purchasers.

In 2021, Google eventually outperformed high-tech competitors, long referred to as the “FANG” stocks. But despite a bear market in technology equities, the other FANGs, including Netflix (NASDAQ:NFLX), Amazon, and Facebook parent company Meta Platforms (NASDAQ:META), have suffered this year.

In 2021, Alphabet stock increased by 65%. Alphabet stock has lost 30% so far in 2022, underperforming the S&P 500. The S&P 500 has fallen by around 19.5%. The Alphabet stock split may eventually open the door for the tech titan to join the Dow Jones Industrial Average. Retail investors might be more drawn to Alphabet stock.

Tough Year-Over-Year Comparisons for the Alphabet Stock?

The broad picture: as the coronavirus emergency subsides in 2022, Google shares will confront more challenging year-over-year growth comparisons. In light of a potential economic downturn, Google intends to reduce recruiting. Google’s CEO urged staff members to increase productivity in a new initiative called “Simplicity Sprint.

Featured Image-  Megapixl @ Miluxian

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About the author: I'm a financial freelance writer keen on the latest market developments which i articulate with writing stock updates, press releases and investor news. As a person i live by the code of a sustainable human existence and a carbon neutral universe. When off work, i spend time reading non-fiction books, flying drones, and outdoor cycling.