Bullish signs for Alphabet after post-earnings decline
When Alphabet (Nasdaq: GOOG) announced earnings on April 29, the company beat its EPS estimate, but it came up a little short on its revenue estimate. Investors didn’t take the news well and the stock fell 8.5% the next day. That was the biggest one-day decline for the stock since 2012.
Now that things are starting to settle back down, there are a couple of signs that could be bullish for the stock. On May 6, after opening sharply lower the stock rallied back to close slightly higher. The overall market dropped sharply at the open that day and rallied back, but didn’t make it back to positive territory. The candlestick that was formed on May 6 is called a bullish engulfing pattern.
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If you look at the two candlesticks in the circle, you see that the opening price was below the lowest point from Friday May 3, and the closing price was above the highest point from that day. The entire candle from Monday “engulfs” the candle from Friday and this pattern is considered a bullish sign.
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In addition to the chart pattern, the Tickeron AI Trend Prediction tool generated a bullish signal on Alphabet on May 2. The signal showed a confidence level of 81% and it calls for a gain of at least 4% over the next month. Past predictions on the stock have been successful 69% of the time.
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Even with the earnings disappointment, Alphabet still has really good fundamental measurements. The company has been able to grow earnings by 24% per year over the last three years while sales increased by 23%. The revenue growth that was so disappointing—it was up 17% from the first quarter of 2018.
GOOG's Stochastic Oscillator stays in oversold zone for 7 days
The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an uptrend is expected.
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Notable companies
The most notable companies in this group are Alphabet (NASDAQ:GOOG), Alphabet (NASDAQ:GOOGL), Meta Platforms (NASDAQ:META), Spotify Technology SA (NYSE:SPOT), Baidu (NASDAQ:BIDU), Pinterest (NYSE:PINS), Tencent Music Entertainment Group (NYSE:TME), Snap (NYSE:SNAP), Twilio (NYSE:TWLO), Zillow Group (NASDAQ:Z).
Industry description
Companies in this industry typically license software on a subscription basis and it is centrally hosted. Such products usually go by the names web-based software, on-demand software and hosted software. Cloud computing has emerged as a major force in this space, making it possible to save files to a remote database (without requiring them to be saved on local storage device); as long as a device has access to the web, it can access the data and the software programs to run it. This has in many cases facilitated cost efficiency, speed and security of data for businesses and consumers. Alphabet Inc., Facebook, Inc. and Yahoo! Inc. are some well-known names in the internet software/services industry.
Market Cap
The average market capitalization across the Internet Software/Services Industry is 60.93B. The market cap for tickers in the group ranges from 1.11K to 1.94T. GOOGL holds the highest valuation in this group at 1.94T. The lowest valued company is MSEZ at 1.11K.
High and low price notable news
The average weekly price growth across all stocks in the Internet Software/Services Industry was -1%. For the same Industry, the average monthly price growth was -0%, and the average quarterly price growth was 2%. TRFE experienced the highest price growth at 53%, while QQQFF experienced the biggest fall at -58%.
Volume
The average weekly volume growth across all stocks in the Internet Software/Services Industry was 15%. For the same stocks of the Industry, the average monthly volume growth was 9% and the average quarterly volume growth was -8%
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Valuation Rating: 45
P/E Growth Rating: 72
Price Growth Rating: 59
SMR Rating: 84
Profit Risk Rating: 92
Seasonality Score: -6 (-100 ... +100)