Google parent Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOG) stock traded higher by over 3% on Monday as risk appetite stays firm in big-cap tech.
Alphabet will replaced Verizon Communications Inc (NYSE:VZ) in the Dow Jones Industrial Average before trading opened today. The change gives the Dow greater exposure to mega-cap technology stocks and the AI trade.
Reportedly, Verizon had lost influence in the price-weighted index due to its lower share price, which represented just 0.5% of the Dow.
Technical Analysis
From a trend perspective, GOOG is still in a longer-term uptrend, up 94.71% over the past 12 months and holding about 10% above its 200-day SMA ($313.87). At the same time, the stock is trading 3.3% below its 20-day SMA ($357.16) and 5.9% below its 50-day SMA ($366.88), which keeps the near-term posture more in “repair mode” than in breakout mode.
The 20-day SMA below the 50-day SMA is a bearish crossover that often signals that rallies are being sold sooner than they were earlier in the trend.
Earnings & Analyst Outlook
Looking further out, the next major catalyst for the stock arrives with the July 22, 2026 (estimated) earnings report.
- EPS Estimate: $2.87 (Up from $2.31 YoY)
- Revenue Estimate: $113.54 Billion (Up from $96.43 Billion YoY)
- Valuation: P/E of 25.5x (Indicates premium valuation relative to peers)
Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price forecast of $429.67. Recent analyst moves include:
- TD Cowen: Buy (Raises Forecast to $475.00) (June 9)
- Oppenheimer: Outperform (Raises Forecast to $445.00) (May 15)
- JP Morgan: Overweight (Raises Forecast to $460.00) (April 30)
Top ETF Exposure
- Fidelity MSCI Communication Services Index ETF (NYSE:FCOM): 8.66% Weight
- BBH Select Large Cap ETF (NYSE:BBHL): 8.41% Weight
- Invesco Nasdaq Internet ETF (NASDAQ:PNQI): 9.93% Weight
Significance: Because GOOG carries such a heavy weight in these funds, any significant inflows or outflows will likely trigger automatic buying or selling of the stock.
Price Action
Alphabet shares were up 3.26% at $345.59 at the time of publication on Monday, according to Benzinga Pro data.
Image via Shutterstock
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