Google. Approaching Headwinds- Goog
Industry:
Google is a Multinational Conglomerate within the Internet Services and Technology Industry.
Assessment:
Looking at Google from a technical market perspective will surely increase shareholder weariness. With steep bullish accumulations and the price bracing near all time highs we can definitely expect an increase of exchange activity. Long Term Investors are expected to offload partial positions while the entry bulls will likely start to sit sidelined waiting for a more conclusive consolidation structure. Although the long term profitability, market share domination, and future prospects of Google’s operations appear through its fundamentals integral and sound, technicians may observe an overall high evaluation. The stock currently trades at 29x earnings. This may invoke a temporary or prevailing bearish beta trend in the short term. We examine the protrusion on the exterior of the macro support line. This is a signal for potential price breakdown. However, keep in mind that a short term devaluation does not necessarily signify a reversal of control from the bulls to the bears.
Micro Market Climate:
Canary Jones assess’ a bull controlled, “bull-bear push” trending market condition categorized by increasing bullish accumulations being “pushed down” by selling activity at high resistance regions.
Patterns Identified:
Narrowing Wedge
Bullish Flag
2 Measured Moves Up
Fundamental Ratios:
Long Term Debt to Equity:
2.22%
Quick Ratio:
3.93 Declining
Current Ratio:
3.96
ROI:
14.28%
ROE:
16.26%
ROA:
12.38%
Net Income:
$30.74 B
P/E Ratio:
29.28
EPS:
$12.78/ Share
EBITDA:
$16.53
Gross Profit:
$77.27 B
Source: Google
Potential Risks
Devaluation:
Due to a supposed algorithm change on Google’s popular YouTube platform, Google’s market cap has been devalued by $70 billion dollars. An enormous sum and a testament to the negative net return of YouTube's primary operations for Google's long term prospect.
Regulatory:
Due to the impressive market share dominated by Google, numerous countries have moved to place particular regulations against Google and a variety of online tech and social media companies. Googles size and web traffic places attention on the company which may position the company at risk of future regulations regarding the companies flexibility with online content. Numerous anti-trust probes in both Europe and the US have recently sparked wide controversies regarding the companies operations.
Google is a Multinational Conglomerate within the Internet Services and Technology Industry.
Assessment:
Looking at Google from a technical market perspective will surely increase shareholder weariness. With steep bullish accumulations and the price bracing near all time highs we can definitely expect an increase of exchange activity. Long Term Investors are expected to offload partial positions while the entry bulls will likely start to sit sidelined waiting for a more conclusive consolidation structure. Although the long term profitability, market share domination, and future prospects of Google’s operations appear through its fundamentals integral and sound, technicians may observe an overall high evaluation. The stock currently trades at 29x earnings. This may invoke a temporary or prevailing bearish beta trend in the short term. We examine the protrusion on the exterior of the macro support line. This is a signal for potential price breakdown. However, keep in mind that a short term devaluation does not necessarily signify a reversal of control from the bulls to the bears.
Micro Market Climate:
Canary Jones assess’ a bull controlled, “bull-bear push” trending market condition categorized by increasing bullish accumulations being “pushed down” by selling activity at high resistance regions.
Patterns Identified:
Narrowing Wedge
Bullish Flag
2 Measured Moves Up
Fundamental Ratios:
Long Term Debt to Equity:
2.22%
Quick Ratio:
3.93 Declining
Current Ratio:
3.96
ROI:
14.28%
ROE:
16.26%
ROA:
12.38%
Net Income:
$30.74 B
P/E Ratio:
29.28
EPS:
$12.78/ Share
EBITDA:
$16.53
Gross Profit:
$77.27 B
Source: Google
Potential Risks
Devaluation:
Due to a supposed algorithm change on Google’s popular YouTube platform, Google’s market cap has been devalued by $70 billion dollars. An enormous sum and a testament to the negative net return of YouTube's primary operations for Google's long term prospect.
Regulatory:
Due to the impressive market share dominated by Google, numerous countries have moved to place particular regulations against Google and a variety of online tech and social media companies. Googles size and web traffic places attention on the company which may position the company at risk of future regulations regarding the companies flexibility with online content. Numerous anti-trust probes in both Europe and the US have recently sparked wide controversies regarding the companies operations.
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