Buy any dips in Alphabet in case of earnings whiff

[tacobell fan]

It’s the final FAANG frontier.

Google parent Alphabet is set to report earnings after the bell Monday, the last FAANG stock to release the latest quarterly results. The other names – Facebook, Apple, Amazon, and Netflix – have each reported in recent weeks.

 

Ari Wald, head of technical analysis at Oppenheimer, said Alphabet’s setup looks strong into earnings.

“The stock does screen well for us longer term. We think it continues to make higher lows followed by higher highs,” Wald said Monday on CNBC’s “Trading Nation.” “The standout here is really … the top-down tail winds from what remains a relatively and broadly strong technology sector.”

Alphabet is often grouped among high-momentum tech stocks even though it is not technically a part of the sector -- the stock was reallocated to the communications services sector in mid-2018. It typically gets a boost from strong investor appetite for tech.

“These high-growth companies just remain resilient to these oscillating interest rates and every time the growth scare hits, the premium gets placed on them,” Wald said.

Alphabet shares have risen 10% this year, better than the 2% increase in the XLC communications services ETF and 5% gain on the XLK technology ETF.

“The stock is moving higher versus the S&P 500 as well really since the start of the year — that was the tactical signal. It’s a little bit extended near term but, again, expect higher lows followed by higher highs. Pullbacks should be bought,” said Wald.

Quint Tatro, president of Joule Financial, is more cautious on Alphabet after its major run.

“We’ve been net sellers here of big-cap tech. I know it’s not a popular view, but I struggle paying 26, 27 times forward earnings for something that’s only growing 17%. I know that they traditionally have been trading in that range, but I think they’re priced near to perfection,” said Tatro said during the same segment.

Fourth-quarter earnings are expected to have contracted 2%, according to analysts surveyed by FactSet. However, full-year profit is anticipated to have grown 6%. Full-year sales are forecast to have increased 19%.

“If they hint at any sort of slowdown or any of these concerns impacting the top or bottom line, I think the stock is going to get whacked,” said Tatro.

[Scada]

sunder ankul endi ala guddi vadi la unadu 

[macha]

I agree...  but I dont think there will be dip this earning will be blockbuster for google...

[TensionNahiLeneka]

21 minutes ago, macha said:

I agree...  but I dont think there will be dip this earning will be blockbuster for google...

missed on revenue anta. it might go down temporarily. what you say ?

[TensionNahiLeneka]

25 minutes ago, Scada said:

sunder ankul endi ala guddi vadi la unadu 

tensions ekkuva ainayi anta. @TensionNahiLeneka ani cheppu. 

[macha]

2 minutes ago, TensionNahiLeneka said:

missed on revenue anta. it might go down temporarily. what you say ?

missed on sluggish advertisement ... for me google Disney tesla ... any dip is a buying opportunity....

[TensionNahiLeneka]

3 minutes ago, macha said:

missed on sluggish advertisement ... for me google Disney tesla ... any dip is a buying opportunity....

+69

[xano917]

Gudsindhi 

[DummyVariable]

1 hour ago, macha said:

I agree...  but I dont think there will be dip this earning will be blockbuster for google...

??

[DummyVariable]

1400 put tomorrow morning 

[Thokkalee]

Down by 1% compared to mornings opening price.. I won’t call that a dip.. 

hoping for a trump tweet that brings a big dip in the market