Google Stock Rises On Analyst Upgrade, But Is It Premature?

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Alphabet (GOOG) Stock Weekly Chart 

Alphabet (GOOG) rose by 4%, after Deutsche Bank raised its price target on the stock to $1400. 

While this may be a good call, it appears premature based on the stock’s market cycles.

Deutsche Bank stock analyst Lloyd Walmsley raised his price target on Alphabet to $1400, which is a 25% premium on yesterday’s closing price. His optimism is based on the possibility to generate additional revenue by placing ads on the new Google Discover feed on Android phones. 

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Additionally, Walmsley observed, “We see an accelerating pace of new ad product making us meaningfully more confident in the 2020 outlook. We think Google has among the best ad product pipelines we have seen” since 2015.”

Based on the market cycles for GOOG, we believe the stock is still in the declining phase of its current cycle. So, while this may be a good call, it seems premature.

We are looking for a pullback in the next month, testing recent low near, near $1100, then up into the summer.

For more from Slim, or to learn about cycle analysis, check out the askSlim Market Week show every Friday on our YouTube channel

Twitter:  @askslim

Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.