Alphabet (GOOGL) Stock Rose 1% Yesterday but Fell Around 3% in Pre-market Today

UTC by Christopher Hamman · 3 min read
Alphabet (GOOGL) Stock Rose 1% Yesterday but Fell Around 3% in Pre-market Today
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Alphabet (GOOGL) stock price has been topsy-turvy. This, however, doesn’t change the company’s profit outlook as investors expect increased demand due to the COVID-19 situation.

Alphabet Inc (NASDAQ: GOOGL) stock prices have been volatile in recent times. Sources say that the technology giant’s stock has had a rough time. This has been mostly due to the COVID-19 situation. 

This hasn’t slowed the demand for Google’s products. Google which is Alphabet’s child company, has seen an increase in the demand for its products across, the board. 

Google has experienced a huge rise in the demand for its cloud services. This is in response to a shift in business trends due to COVID-19. 

Other technology giants have had a similar price movement as well. Amazon.com Inc (NASDAQ: AMZN), Microsoft Corporation (NASDAQ: MSFT) and Alibaba Group (NYSE: BABA) have also been competitors in this industry. 

More organizations are seeking to maintain their competitive edge. They have decided to use remote working tools to continue business activities. Lockdown restrictions remain in place. Many analysts at this time have chosen other competitors as choice stock ahead Alphabet. Alibaba (BABA) is one such example. With its seemingly new global outreach, the company has been touted by many to be the new haven for tech investors. 

Alphabet (GOOGL) Stock Prices Remain Strong

Alphabet’s fundamentals remain strong. The numbers show that the company still holds promise. With its $46.08 billion revenues, the company remains within the ballpark of an investors’ haven. Even though such numbers failed to meet expectations. Google’s business model remains very much in demand. 

Advertising revenues also grew from the previous quarter’s $33.91 billion. This shows that higher revenues are to be expected in this year alone. 

Social networking seems to have been profitable as well. Alphabet and its daughter company Google seem to have missed out on the social networking trend. This technology niche has turned out to be quite profitable as opposed to other business models making waves at the time. 

Facebook Inc (NASDAQ: FB) is the 600-pound Gorilla with three of the biggest different platforms. They are still yet to achieve their maximum potential when it comes to profit. Sources say that Facebook’s ad revenues grew by about 25% from last quarter as opposed to Alphabet’s profits (16.2%). However, today, in the pre-market, FB stock was 3.36% down.

Social Networking Is Still a Growing Industry

Many rookie investors will consider the disparity to mean that Alphabet is slowing down in terms of advertising revenues. They fail to see that Facebook is still a growing organization. Alphabet also has other business units that are profitable. Those units will make up for any shortfall in profits from ads over time. 

As the COVID-19 situation worsens, we should expect to see new services from Alphabet and other technology giants. These will come in response to the demand for new products and services. 

Technology is expected to bridge the many gaps that COVID-19 has created. Alphabet (GOOG) is going to be one of the leaders that provide the solutions to everyone’s problems at this time. After all, what can we all expect from a company that buys startups every other week (pun intended)?

As at the time of filing this report, Alphabet (GOOGL) stock price stood at $1,161.95, +15.64 (1.36%) after yesterday’s session. In the pre-market today, GOOGL was trading at $1,128.00 which means a 2.92% fall. 

The company’s market cap is 798.77 billion.

Business News, Market News, News, Stocks, Technology News
Christopher Hamman
Author: Christopher Hamman

Christopher Haruna Hamman is a Freelance content developer, Crypto-Enthusiast and tech-savvy individual. He is also a Superstar Content Developer, Strategy Demigod, and Standup Guy.

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