Wall Street’s bullish pre-open driven by Alphabet’s Q4 earnings reports
During yesterday's trading day, Google’s parent company Alphabet announced its Q4 2020 results, showing excellent revenue performance hugely exceeding the expectations of market analysts.
Alphabet posted earnings per share of $22.3 and revenue of $56.9 billion, compared to $15.68 per share and $52.89 billion as expected by the analyst consensus. Net profit increased by 17.25% to $40.3 billion, despite the fact that for the moment it seems that Google Cloud still does has not taken off against its competitors, Amazon and Microsoft.
These results have been very well received by investors, with an increase of 7.40% in the pre-opening, which helps it to exceed $2000 per share, thus reaching new all-time highs.
Technically speaking, the uptrend in Alphabet has been very clear in recent months after the sharp declines at the beginning of the pandemic led to all-time highs. Currently, the price is far from its main support levels, which shows strength, although little by little its stochastic indicator is approaching overbought levels, so we will have to be very aware of how the price behaves in the next sessions.
At the moment, the upward trend does not seem to be in any risk, although some type of correction in the medium term can never be ruled out. As long as it maintains its main support level in the coinciding zone between the red band and its trend line, the feeling will be bullish.
Source: Admiral Markets MetaTrader 5. Alphabet daily chart. Data range: from October 14, 2019 to February 3, 2021. Prepared on February 3, 2021 at 12:25 CET. Keep in mind that past returns do not guarantee future returns.
Price evolution in the last 5 years:
- 2020: 30.85%
- 2019: 28.18%
- 2018: -0.80%
- 2017: 32.93%
- 2016: 1.86%
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