It’s been a big year for tech investors with the launch of the new Apple iPhone 14 and the new folding Samsung phone. Now, the attention turns to Google’s hardware event on 6 October in New York.
The event will reveal more details about the new Pixel 7 and Pixel 7 Pro phones while also releasing Google’s first-ever smartwatch called the Pixel Watch.
Learn how to trade Alphabet shares (Google’s holding company) here.
|Stock:||Alphabet Inc. (Google Class A)|
|Symbol for Invest.MT5 Account:||GOOG|
|Date of Idea:||13 Sept 2022|
|Time Line:||1 – 6 months|
|Position Size for Invest.MT5 Account:||Max 5%|
- The Invest.MT5 account allows you to buy real stocks and shares from 15 of the largest stock exchanges in the world.
All trading is high risk and you can lose more than you risk on a trade. Never invest more than you can afford to lose as some trades will lose and some trades will win. Start small to understand your own risk tolerance levels or practice on a demo account first to build your knowledge before investing.
Why Trade Alphabet Stock?
Alphabet is the parent company of Google and – at the time of writing – its share price is down around 26% from its record high of just under $152 recorded on 31 January of this year. In its most recent earnings report, Alphabet reported some positives but also some negatives.
Revenue came in lower than expected and many of its divisions are underperforming. Advertising from its YouTube business fell short of analyst expectations and revenue growth slowed compared to the prior year.
However, the company also posted a huge rise in revenue from its Google ‘Search and Other’ segment while overall advertising from all of its products rose. While around 80% of the company’s revenue comes from advertising, Alphabet has operations in many industries such as self-driving cars, consumer tech, gaming, etc.
Investors will be keen to see the response to the new Google Pixel 7 and Pixel 7 Pro phones at its hardware event on 6 October, as well as its first ever smartwatch, the Pixel Watch. This could help the overall bottom line but investors will want to see if it can also grow its advertising revenue with more people using its devices.
Currently, Alphabet’s price-to-earnings ratio (PE ratio) of 20.62 is close to its 5-year low of 19.71. The PE ratio is a financial ratio that some analysts and investors use to determine a company’s worth.
Source: GuruFocus, 13 Sep 2022
A factor that may weigh on the stock is the new UK and EU lawsuit announced on 13 September accusing Google of anti-competitive behaviour in the digital advertising market. The combined lawsuits are estimated to be in the region of €25 billion.
Alphabet Stock Forecast – What do the Analysts Say?
According to analysts polled by TipRanks for an Alphabet stock forecast in the past 3 months, there are currently 30 buy, 2 hold and 0 sell ratings on the stock. The highest price level for an Alphabet stock forecast is $186.00 with the lowest price target at $113.00.
The average price target for an Alphabet stock forecast is $142.91 which represents more than 28% upside from current levels, at the time of writing.
Source: TipRanks, 13 Sept 2022
An Example Trading Idea for the Alphabet Stock Price
An example trading idea for the Alphabet share price could be as follows:
- Buy the stock at $112.00 to allow for current market volatility.
- Target just below the average analyst price target at $142.00.
- Keep your risk small at a maximum of 5% of your total account.
- Time Line = 1 – 6 months
- If you buy 10 Alphabet shares:
- If target is reached = $300.00 potential profit ($142.00 – $112.00 *10 shares).
Remember that markets go up and down and it is unlikely the share price will move up in a straight line. In fact, it may even go much further down before it rises, especially considering the recent sell-off in global stock markets.
Be sure to exercise good risk management and always know how much you could potentially lose on a trade and the risks involved, as well as the costs.
With the Admirals Invest.MT5 account you can buy US stocks from $0.02 per share. This means buying 10 shares in Alphabet would result in a commission of $0.20 ($0.02 * 10 shares).
There is a low minimum transaction fee of $1. So, the example trading idea above would result in a commission of just $1 overall!
How to Buy Alphabet Stock in 4 Steps
With Admirals, you can buy shares in companies like Alphabet with a low commission of just $0.02 per share and a low minimum commission of just $1 on US stocks.
- Open an account with Admirals to access the Trader’s Room.
- Click on Trade on one of your live or demo accounts to open the web platform.
- Search for your stock at the bottom of the Market Watch window and drag the symbol onto the chart.
- Use the one-click trading feature, or right-click and open a trading ticket to input your trade size, stop loss and take profit level.
Source: Admirals MetaTrader 5 Web. Past performance is not a reliable indicator of future results, or future performance.
Click on the banner below to buy Alphabet stock today! ▼▼▼
Do You See the Alphabet Stock Price Moving Differently?
Remember that all analytics and trading ideas are based on the personal view and experience of the author.
If you believe there is a higher chance Alphabet’s share price will move lower, then you can also trade short from a CFD (Contracts for Difference) trading account which Admirals also provide.
The Trade.MT5 and Trade.MT4 account allows you to speculate on the price direction of stocks and shares using CFDs.
This means you can trade long and short to potentially profit from rising and falling stock prices. Learn more about CFDs in this How to Trade CFDs article.
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