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Alphabet Inc. Market Update

12/2/2022 1:56 PM

The stocks of the American holding Alphabet Inc. are trading in a local corrective trend at 101.00.

Leading experts are still restrained in their comments on the prospects of the company's shares at the end of the year, but some have already hurried to lower their forecasts. Thus, analysts at Mizuho Bank reduced their target price for the end of the year from 140.0 dollars to 135.0 dollars, citing the expected too restrained growth in the number of staff in 2023 at 5.0%. Also, Alphabet Inc. has already announced that in Q4 the increase in the number of employees will be 50.0% lower than in Q3, and this will have a restraining effect on the growth of the artificial intelligence sphere. Thus, analysts will focus on Alphabet Inc.'s detailed cost-cutting plan.

As for the company's financial indicators, they do not contribute to the long-term growth of shares. Thus, revenue for the third quarter amounted to 69.09B dollars, which is inferior to the forecast of 71.0B dollars and the indicator of the previous quarter of 69.69B dollars. Earnings per share continued to decline and reached 1.06 dollars against 1.21 dollars a quarter earlier and 1.26 dollars expected by analysts.

The corrective growth continues on the four-hour chart, which is a consequence of working out the Flag pattern.

Technical indicators hold a buy signal: the range of EMA fluctuations of the alligator indicator is expanding, and the histogram of the AO oscillator is trading in a positive zone.

Support levels: 99.50, 92.00. | Resistance levels: 103.00, 109.00.

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