Google is one of the most dominant and high-profile brands in the world. When we conduct a search online, we don’t say, “Let’s Bing it.” Nope, we say, “Let’s Google it.”
Though it’s an iconic brand, the stock (NASDAQ: GOOG) has been a massive under-performer for a couple of years, mostly because investors are skeptical about the many esoteric projects it has attempted. To be sure, management has bold ambitions, but many of these have been doomed to fail or just came along too late. For example, their Android phone – long seen as a real threat to Apple’s iPhone – seems to have lost market share. The investment in Android – and many other projects – leave everyone wondering if they bite off more than they can chew.
However, there is no questioning the dominant position of the company when it comes search revenue. They have done a masterful job of leveraging online advertising, and they have now turned their attention to the more lucrative mobile ad model. Google has reached a point of solid growth, it now and competes with the likes of Facebook, Twitter, and Yahoo. Their most recent earnings report was a disappointment but offered some encouragement with their plans going forward.
The recent chart action shows just how hesitant investors are feeling – towards every stock and the market in general. The recent action is constructive, though; Google closed at a high for 2015 last Friday on decent turnover. As you can see from the chart and video below, the technicals have turned positive and reflect more upside to come.
Resistance is up ahead around 560 and then 570, but its relative strength stands out – we’re at the highest level in months. We should see higher prices down the road here for Google as more money pours into the name.
Google Chart Analysis
Take a deeper dive into the chart action as I walk you through the Google stock (NASDAQ: GOOG) and my technical analysis.
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