YouTube’s sudden shift to regulatory compliance hits Alphabet (GOOGL): $70 billion
Google’s parent company Alphabet’s stock fell more than 8% on Tuesday, and the company blames YouTube -- which saw a fall in ad revenue growth of just 15% versus 24% last year.
In Q1 2018, Google began making changes to YouTube’s algorithms that were designed to prevent toxic content from appearing in the recommended videos feed. The aim was to make it harder for users to find conspiracy videos, fake news and such similar waste that repel advertisers. Instead, the algorithm will guide users to more authoritative sources bringing accurate information. Additionally, YouTube has removed millions of channels and videos from its platform that are detrimental to its content policies, for example Alex Jones.
But this proved to potentially be counter-productive, as all the negative content kept engagement high. Investors believe this may not be the only cause of ad revenue decline and the subsequent hit to the stock price. Many suspect other undisclosed factors that could be at work, but YouTube’s sudden shift to responsibility and safety and compliance with content regulations seem to be the top cause as of now.
Momentum Indicator for GOOG turns positive, indicating new upward trend
GOOG saw its Momentum Indicator move above the 0 level on December 06, 2024. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 88 similar instances where the indicator turned positive. In of the 88 cases, the stock moved higher in the following days. The odds of a move higher are at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for GOOG just turned positive on December 09, 2024. Looking at past instances where GOOG's MACD turned positive, the stock continued to rise in of 49 cases over the following month. The odds of a continued upward trend are .
GOOG moved above its 50-day moving average on November 25, 2024 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where GOOG advanced for three days, in of 369 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 318 cases where GOOG Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for GOOG moved out of overbought territory on December 18, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 51 similar instances where the indicator moved out of overbought territory. In of the 51 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 73 cases where GOOG's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where GOOG declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
GOOG broke above its upper Bollinger Band on December 10, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 90, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. GOOG’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (6.868) is normal, around the industry mean (11.194). P/E Ratio (26.982) is within average values for comparable stocks, (48.888). Projected Growth (PEG Ratio) (1.637) is also within normal values, averaging (3.441). Dividend Yield (0.000) settles around the average of (0.026) among similar stocks. P/S Ratio (6.477) is also within normal values, averaging (19.660).
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a holding company with interests in software, health care, transportation and other technologies
Industry InternetSoftwareServices