This post features Alphabet, or what many of us still like to call ‘Google.’
GOOGL: A tech ‘ETF’
Of all the tech companies, I rely the most on Google. It is a highly diversified business containing:
Pixel smartphones + Android
Search, Chrome, Maps
Google Cloud Platform (GCP), Drive + Docs
YouTube (including Music, TV)
Chromecast, Nest devices
Waymo, DeepMind, Fiber, Verily
Being a trend follower, I’m not the guy to ask how technology will evolve in the future, whether Google is “cheap”, and if its business will grow faster than other big tech companies.
What I can do is assess its trend and momentum. And the charts do look mighty nice.
Google: Technical Charts
It’s no secret that Big Tech has crushed the S&P 500 over the past decade. More recently, the ‘FAMANG’ stocks have been forming a bullish 1-year consolidation relative to the S&P 500.
Among Big Tech, Google has lagged for a long time. However, it is now breaking out of a 3-year base relative to its peers, the ‘FAMAN’ group. What a beauty.
And here’s Google relative to the broader QQQ. For over a decade it’s been forming a large base.
Big Tech is one of the most attractive areas in the market, and Google has now become one of the most attractive stocks in tech thanks to:
A diversified business of highly relied upon products & services
Low sentiment from years of underperformance
Monster bases relative to FAMAN and QQQ
Important Disclaimer: This blog is for educational purposes only. I am not a financial advisor and nothing I post is investment advice. The securities I discuss are considered highly risky so do your own due diligence.