Alphabet Inc (NASDAQ: GOOG) stock has been trading upward since March of this year. Despite that, it is yet to reach the highs of 2021 and 2022.
Wall Street analysts believe the Google stock will make modest gains within the next 12 months.
The average analyst target price sees a 9% gain
Analyst consensus at TipRanks is a ‘strong buy’ for the GOOG stock based on 9 analysts in the last three months. Their average price target is $142.33, which is 9.13% higher than the current price of $130.42.
Alphabet’s Q2 2023 results beat estimates where revenue came at $74.6 billion vs. $72.75 billion — a 7% growth year-over-year — and earnings per share of $1.44 vs. $1.34. This was driven by search advertising coupled with a rebound in growth at YouTube and continued momentum in the Google Cloud business with a 28% sales growth year over year.
The growth in revenue shows that Google is holding against Microsoft’s new AI-powered Bing search engine, and it could keep going.
Alphabet stock technical analysis
The stock price has been trading in an ascending channel since March 2023. This means the price makes higher highs and higher lows. However, this is a bearish pattern, meaning the breakout often happens at the lower trendline.
Another bearish sign is the bearish engulfing pattern formed in the last two trading sessions. This is a reversal pattern that appears in an uptrend.
The current support level is $130, but there is a high probability that the stock price will retest $120 next.
With Alphabet still showing signs of growth, any pullback could present a good buying opportunity if you’re long-term bullish on the stock.
GOOG has outperformed the S&P 500’s 16% return year-to-date, with a 45% gain during the same period.
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