Since the 2000's Google has always been a growth story. As individuals in this information age it is hard to imagine a life without GOOG. From searching up information to sharing photos, advertising to booking flights, google has become an indispensable part of our lives.
Privacy concerns since the publication of Cambridge Analytica's activities dented the growth of the FANG stocks for a short while but the growth seems to be on track now. With the recent product demos involving AI and Machine Learning, I feel that Google is going be a lead player in most markets (if not by itself then through partnerships; such as the partnership with Walmart to prevent Amazon from cornering all the product search market). There will surely be competition, but Google has the first mover advantage.
The current pattern seems to be that of an ascending triangle (which in general is a bullish pattern). However, I would wait till a breakout occurs before buying into it. If I want to take a really long position, I might buy when there is a slight pullback from the current levels where there is support from the hypotenuse of the ascending triangle.
However, the risk is that the FANG stocks trade at incredible valuations (high P/E; an indication of their future earning potential). Any big shock to the market is going to send these crashing down till the market reaches some kind of equilibrium as evidenced by the Facebook and the Cambridge Analytica incident. Happy trading!!!
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