Slowing revenue growth bearish for Alphabet
Alphabet price dropped after company reported slowing first quarter revenue. Will the Alphabet price continue declining?
Google’s parent Alphabet shares dropped over 7% as the company reported weaker than expected first quarter revenue a month ago. Google report showed company’s growth decelerated after consistently expanding at 20% or more in prior periods. Revenue increased 17%, down from 28% growth a year earlier, and advertising sales rose 15%, down from 24% a year ago. The slowdown was attributed to slower growth in paid clicks: 39% in Q1 from the year-ago quarter, after 66% increase in the fourth quarter of 2018 and 62% in the third quarter. It was the second straight disappointing quarterly report for Alphabet. The stock has struggled to recover since then. Slowing growth is bearish for Alphabet price.
On the daily timeframe the S-GOOG: D1 has breached below the 200-day moving average MA(200) and is falling toward Fibonacci 61.8. This is bearish.
Technical Analysis Summary
Position Sell
Sell stop Below 1107.60
Stop loss Above 1187.58
Alphabet price dropped after company reported slowing first quarter revenue. Will the Alphabet price continue declining?
Google’s parent Alphabet shares dropped over 7% as the company reported weaker than expected first quarter revenue a month ago. Google report showed company’s growth decelerated after consistently expanding at 20% or more in prior periods. Revenue increased 17%, down from 28% growth a year earlier, and advertising sales rose 15%, down from 24% a year ago. The slowdown was attributed to slower growth in paid clicks: 39% in Q1 from the year-ago quarter, after 66% increase in the fourth quarter of 2018 and 62% in the third quarter. It was the second straight disappointing quarterly report for Alphabet. The stock has struggled to recover since then. Slowing growth is bearish for Alphabet price.
On the daily timeframe the S-GOOG: D1 has breached below the 200-day moving average MA(200) and is falling toward Fibonacci 61.8. This is bearish.
- The Parabolic indicator gives a sell signal.
- The Donchian channel indicates downtrend: it has widened down.
- The MACD indicator gives a bearish signal: it is below the signal line and the gap is widening.
- The RSI oscillator is falling but has not breached into the oversold zone yet.
Technical Analysis Summary
Position Sell
Sell stop Below 1107.60
Stop loss Above 1187.58