Google(#GOOGLE) weekly uptrend opportunity based On 1 Lot Calculation:
WEB SEARCH INDUSTRY:
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ALMOST 67% OF ALL INTERNET SEARCHES ARE PERFORMED ON GOOGLE. Other companies that can compete with Google are BING, DuckDuckGo, etc.
ONLINE ADVERTISEMENT:
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MARKET SIZE: $465.5 BILLION IN 2021 AND EXPECTED TO GROW TO $1.089 TRILLION IN 2027 (22.3%). The global internet advertising market size was valued more than $465.5 billion in 2021, and is projected to reach $1.089 trillion by 2027, registering an average growth of 22.32% from 2021 to 2027.
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GLOBAL MARKETS: Google, Meta (formerly Facebook) and Amazon accounted for more than $7 in $10 (74%) of global digital ad spending in 2021, which is 47% of all money spent on advertising over that period.
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MARKET SHARE IN THE U.S.: Alphabet (Google) at 26.4%, META (Facebook) at 24.1%, Amazon 14.6%, Rest at 34.9%.
GOOGLE:
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THE COMPANY: Alphabet (Google) is the fourth largest company by market capitalization in the world, worth $1.423 trillion dollars.
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ONLINE ADVERTISEMENT: 81.3% OF TOTAL REVENUE IN 2021 COMES FROM ADVERTISING.
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STRONG POSITIVE REVENUE TREND (23% AVERAGE GROWTH RATE PER ANNUM FOR THE PAST FIVE YEARS): The company’s revenue grew by around 23% on average per year over the past five years.
EVENTS AND ANALYSIS:
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Q2 EARNINGS REPORT (CONFIRMED, JULY 26, AFTERMARKET): Google is set to report Q2 earnings on the 26th of July. Analysts are forecasting Google to increase Q2 revenue by 3.5% vs Q1. Net Income is expected to increase 20% quarter-on-quarter. EPS is expected to increase 21% quarter-on-quarter.
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EXPECTATIONS: GOOGLE COULD BE ADDED TO THE DOW JONES 30 INDEX. Google has become a candidate to join the most important stock index in the US, the Dow Jones 30 Index. Analysts have alleged that this is likely to happen once Goggle’s stock split is complete.
STOCK SPLIT EVENT:
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EVENT (STOCK SPLIT: 20 to 1): EFFECTIVE ON (MONDAY) JULY 18, 2022. According to MarketWatch, investors view stock splits as a sign of confidence by management, because splits happen more often in stocks that have bullish momentum behind them. Splits also increase liquidity by making shares more accessible to a wider range of investors. To reinforce the thesis of stock splits intended to reach a wider range of investors, Alphabet (Google) CFO commented on the split “The reason for the split is it makes our shares more accessible.”
GOOGLE STOCK SPLIT HISTORY: In the last eight years, since the previous stock split in 2014 (ratio: 2:1), Google stock price rose more than 300% to a level of 2293 USD a share.
STATISTICS: Since 1980, the shares of companies that do stock splits are typically up 25% a year later, compared to 9% for the broader market, according to a recent study by Bank of America.
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STOCK PERFORMANCE AFTER STOCK SPLIT (SOURCES: YahooFinance, Bloomberg, Fortrade MT4):
Apple (STOCK SPLIT: 7-1 effective June 9, 2014): 3 Months: +8.69%. 6 Months: +19.26%. 12 Months: +37.00%
Tesla (STOCK SPLIT: 5-1 effective August 31, 2020): 3 Months: +28%. 6 Months: +53%. 12 Months: +65.91%
Apple (STOCK SPLIT: 4-1 effective August 31, 2020): 3 Months: -4.5%. 6 Months: +2.11%. 12 Months: +22.00%
NVidia (STOCK SPLIT: 4-1 effective July 20, 2021): 3 Months: +17.60%. 6 Months: +30%. 12 Months: -
*Please note that past performance does not guarantee future results
OTHER EVENTS AND ANALYSIS:
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PRICE ACTION: THE STOCK HAS HAD A DOWNWARD CORRECTION OF AROUND 32.70% FROM ITS ALL TIME HIGH OF $151.55. The stock has fallen to its lowest rate in more than a year, to $102. Alphabet (Google) was last trading around $115, and if full recovery follows recent all- time highs, the stock could see an upside of ~32%.
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ANALYST OPINION: Wells Fargo forecasts $170. Morgan Stanley forecasts $150. Credit Suisse forecasts $170. Goldman Sachs forecasts $150.
GOOGLE(#GOOGLE), July 18, 2022
Current Price: 115.00
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Weekly |
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Trend direction |
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170.00 |
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150.00 |
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140.00 |
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100.00 |
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90.00 |
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80.00 |
Example of calculation based on weekly trend direction for 1 Lot1
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Pivot Points |
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Profit or loss in $ |
5,500.00 |
3,500.00 |
2,500.00 |
-1,500.00 |
-2,500.00 |
-3,500.00 |
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Profit or loss in €2 |
5,415.52 |
3,446.24 |
2,461.60 |
-1,476.96 |
-2,461.60 |
-3,446.24 |
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Profit or loss in £2 |
4,592.75 |
2,922.66 |
2,087.61 |
-1,252.57 |
-2,087.61 |
-2,922.66 |
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Profit or loss in C$2 |
7,190.26 |
4,575.62 |
3,268.30 |
-1,960.98 |
-3,268.30 |
-4,575.62 |
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1.00 lot is equivalent of 100 units
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Calculations for exchange rate used as of 13:30(GMT+1) 18/07/2022
Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Client Manager regarding their use.
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You may wish to consider closing your position in profit, even if it is lower than suggested one
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Trailing stop technique can protect the profit – Ask your Client Manager for more detail