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    Analytical review of Alphabet Inc. shares on 04.02.2016

    AlphabetInc., #GOOG [NASD]
    Technology, Internet Information Provider, USA

    Financial performance of the company:

    Index – S&P 500
    Beta – 0.89
    Capitalization – 550.00 B
    Return on assets – 11.81%
    Income – 66.01 В
    Average volume – 2.13 М
    P/E – 30.65
    ATR – 23.89


    Analytical review:

    • In August 2015 Google Inc. has reorganized its business. The largest IT company has become part of the Alphabet holding Inc. This fact enables the company to diversify its business and attract additional investments;
    • On 1 February the company reported for Q4 of the fiscal year. The results exceeded analysts’ expectations. The income of the company was over 23 billion USD;
    • During trading session on 2 February февраля, the Issuer’s shares have increased in price by 8%. Alphabet capitalization exceeded 550 billion USD, which allowed the company to take the first place among issuers, who trade in the American stock market;
    • Most of the income of Alphabet Inc. is generated by Google (advertising, Android, YouTube, cards). For Q4 Google has earned over 20 billion USD. The market of advertising products is rapidly growing every year, which will guarantee that the company will receive high revenue in this sector of its activity;
    • The company plans to increase ventrure capital up to $300 million per year. Google Ventures, an affiliate company is engaged in this type of investments. The main sphere of investment is high-tech companies.

    Summary:

    • Reorganization of business will enable the holding to do business in the new emerging markets and attract additional resources for investments. The report for 2015 showed that management of the company is going a great job. The company pursues aggressive investment policy in the high-tech companies. Successful implementation of the investment projects will increase income and capitalization of the holding company.
    • In the near future the price of the company’s shares will grow.

    Trading tips for CFD of Alphabet Inc.

    Long-term trading:
    the company shares are traded at the strong support level of 726.00 USD. If this level maintains and in case of the adequate confirmations (for example, pattern Price Action), it is recommended to enter the market with the long positions. Risk per trade is less than 0.5% of capital, as company’s ATR is very high. Stop order can be placed below the formed pattern. For this position we recommend multi-level trading. Take profit can be placed at the levels of 750.00 USD, 785.00 USD and 850.00 USD.


    Medium-term trading: in the last few sessions the company closed “gap up,” which has formed on 2 February, as the result of the positive company’s report. Currently, the issuer is trading near the demand gap of 705.00 – 728.00 USD. If the price maintains this position we recommend to open long positions. Risk per trade is less than 1% of capital, as ATR of the company is high. Stop order can be placed slightly below the signal. Conservative traders should better wait for the decline in price to 705.00 – 715.00 USD. We recommend multi-trade for this position. Take profit can be placed at the levels of 745.00 USD, 760.00 USD ND 785.00 USD.



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