Chart analysis (technical analysis) $GOOGL (-0.05%)
Historical price development:
- 5-year trend: Alphabet Inc. shares (GOOGL) show a clear upward trend over the last five years, with some periods of volatility. The price rose from around USD 54.41 in March 2020 to USD 204.02 in March 2025 before correcting to USD 160.67 (as of March 18, 2025).
- Important support and resistance levels:
- Current price: USD 160.67 (as at March 18, 2025)
- Support (S1): USD 156.72
- Resistance (R1): USD 165.48
- 50-day moving average: USD 195.88
- 200-day moving average: USD 185.99
Technical indicators:
- RSI (Relative Strength Index): The RSI is currently at 45, indicating a neutral market, with potential for further correction or consolidation.
- Volume: The average trading volume is 30.08 million shares per day, indicating high liquidity.
Chart pattern:
- Consolidation: Currently, the stock is in a consolidation phase after a strong rise in 2024, which could provide an opportunity for a renewed uptrend once the resistance at USD 165.48 is broken.
Fundamental analysis
Financial health:
- Valuation Metrics:
- P/E ratio (price-to-earnings ratio): 28.38
- P/B ratio (price-to-book ratio): 6.22
- KUV (Price-to-Sales Ratio): 5.80
- Growth metrics:
- Sales growth: 13.87% (YoY)
- Net income growth: 35.67% (YoY)
- EPS growth: 37.67% (YoY)
- Financial stability:
- Current ratio: 1.84
- Debt-to-equity ratio: 0.08
- ROE (return on equity): 32.48
- ROIC (Return on Invested Capital): 25.78
Competitive position:
- AI leadership: Alphabet is a leader in artificial intelligence, particularly with its Gemini platform.
- Google Cloud: The cloud business recorded revenue growth of 30.1% in Q4 2024, which is a key growth driver.
- Investments: Alphabet plans capital expenditure of USD 75 billion in 2025, mainly for the expansion of its technical infrastructure.
Business model:
- Strategic initiatives: Focus on AI innovation, cloud growth and operational efficiency.
- Risks: Challenges in monetizing new AI products and impact of exchange rate fluctuations.
Future prospects: Merger with Wiz
Potential impact:
Improved cloud security: the acquisition of Wiz for USD 32bn is expected to strengthen Google Cloud's cybersecurity capabilities, making it more competitive against Amazon and Microsoft.
Market positioning: The merger could give Alphabet a stronger position in the cloud market and accelerate consolidation in the cloud security space.
Investor confidence: The transaction could boost investor confidence as it underlines Alphabet's long-term growth strategy.
Risks:
- Integration risks: Successful integration of Wiz into the existing product portfolio is critical but carries risks.
- Regulatory hurdles: The transaction could face regulatory hurdles, particularly in relation to competition concerns.
Conclusion
Chart analysis: Alphabet's shares are showing a long-term upward trend, but are currently in a consolidation phase. A break through the resistance at USD 165.48 could initiate a new upward trend.
Fundamental analysis: Alphabet has strong financial health, a leading position in AI and cloud and a solid business model. The planned acquisition of Wiz could further strengthen future competitiveness, but also harbors risks.
Future prospects: The merger with Wiz could significantly improve Alphabet's cloud security capabilities and strengthen its market position. In the long term, Alphabet continues to offer attractive growth opportunities, particularly in the area of AI and cloud services.
