The move came after better-than-expected earnings and extends the stock’s strong run over the past few months.
Analysts were looking for earnings of $15.90 a share on revenue of $53.13 billion. Alphabet turned in profit of $22.30 a share and revenue of $56.9 billion.
An earnings result that came in 40% ahead of estimates and revenue that was more than $3.5 billion above expectations is pretty darn good. Certainly good enough to justify Alphabet’s push to record highs.
Of course, other mega-cap tech stocks haven’t fared as well after earnings. So far, Alphabet is the best-performing FAANG stock this year and over the last three and six months.
Alphabet is now up more than 18% so far this year, while the next best-performing stock in the group is up just 4.2%, that being Amazon (AMZN) - Get Report. For what it’s worth, Amazon was about flat on the day after also having reported earnings.
Alphabet has been the best-performing FAANG holding over the past few months and for now, that trend looks set to continue.
The above chart can be a little confusing with multiple extensions drawn in. Simply put, the black extensions are from the first quarter 2020 range and the blue extensions are from the quick but painful September decline.
Roughly speaking, both ranges share the same two-times range extension near $2,050, which Alphabet dipped below but reclaimed on Wednesday.
I would love to see Alphabet hold above the two-times range extension and really, just stay above $2,000. If it can do so, perhaps some of these upside extensions could eventually be in play, such as $2,250 and $2,375.
On the downside, look for support from the 10-day moving average. Below that measure and the $2,000 level could put a post-earnings gap fill on the table.