Alphabet Valuation and Price Action

Alphabet price is perched on the upward diagonal line. Valuation remains robust. Trading @ 20x this years Forecast Earnings, vs. 18.8x SP500.

However, given that a) Alphabet has consistently grown Earnings far in excess of the S&p500, and b) Earnings Multiples typically expand in Bull Markets, Alphabet is killing time by fluctuating in the $120-$144 range. The longer the sideways price action persists, the greater the move will be when the Breakout occurs.

How high can GOOGL blow?

We could see $200+ this year. At LEAST new highs.

Earnings Release is end of January/Early February. That could be the trigger to launch it to new highs. If not, then sideways trend is in play, where the breakout will be Q4 by the latest. Either way, not bothered, as the longer it drifts sideways, the greater the price move when it happens.

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with a regulated financial advisors before engaging in any trading activities.