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26.04.202221:00 Forex Analysis & Reviews: Hurry up now: the flagship of the Nasdaq index - Alphabet Inc. (Google) is trading at delicious prices

The largest company, the leader leading the list of technology giants of the world, showed horrendous stock performance (in the horizon of two years). Now analysts are counting on profit that will instantly pull the owner of the leading search engine out of a stall at the peak.

Hurry up now: the flagship of the Nasdaq index - Alphabet Inc. (Google) is trading at delicious prices

The owner of Google, Alphabet Inc., left about 13% of its capitalization to market sharks this month, reducing the company's total market value by $237 billion. The fall is due to a more general panic in the markets that has gripped the entire technology sector: investors are dumping risky growth stocks. Fears of a tougher rate hike due to rising inflation are leading investors to hastily redistribute portfolios in favor of shares of utilities, energy companies and a few others.

In all this bearish panic, only one thing is surprising - the unanimity of analysts insisting on the policy of holders (the survey was conducted among 54 companies covering corporate stock trading).

Exchange Rates 26.04.2022 analysis

None of the other sharks of the tech industry can even come close to boasting such a profile. Yes, even Amazon.com Inc., once the top-ranked tech giant, has roughly equal votes for and against the sale.

There are reasons for such a rare unanimity.

So, Wall Street is betting that this year the Internet giant will demonstrate faster revenue growth than most other FAANGs - Facebook, Apple Inc., Amazon, Netflix Inc. and Google - while the shares are still trading at a discount to the quotes of these companies.Experts expect sales growth of 18%, which may stop the emerging bearish trend associated with the fact that large technology companies are losing their growth. In general, the growth figures are comparable to Apple and Amazon (in aggregate), which, according to analysts' expectations, will report growth of 8.3% and 14.6%, respectively. For all companies in the S&P 500 index, traders predict growth of 10.4%.

The first milestone for Alphabet will begin today, after the close of the US session - the company reports results for the first quarter. Analysts forecast revenue growth of 24% in the first three months of the year, as well as a nearly 20% increase in earnings per share.And although the period is considered difficult for tech companies and the entire growth stocks industry, Alphabet's profits are like a safe haven compared to many other names even within the cluster. And here it is necessary to take into account not only the growth prospects, but also the assessment, which not only never got out of control, but now looks adequate.

So far, Alphabet is trading at an estimated profit of less than 19 times, showing the lowest level since March 2020. But it's colleagues are more expensive: Apple - a multiple of 26, Microsoft Corp. - 27, and Amazon - 40. On average, "on a plate", the Nasdaq 100 index is about 23.

However, some brokers do not emphasize the wow effect.

"Now the situation in the market is quite complicated," says one of the traders, Dan Morgan. However, he noted that so far the company had no cases of concern for shareholders.

Another giant is Twitter Inc. - shows a sharp revival of trading in its securities against the backdrop of news about a possible purchase of the company by Elon Musk. The volume of transactions amounted to an unprecedented 2 billion shares - and this is only direct trading in securities, not futures. The total turnover on shares amounted to 100 billion dollars - the largest volume of trading in the company's papers in the history of Twitter.

On Monday, April 25, it became known that Musk was buying the owner of the largest social network for $44 billion. The deal will take place before the end of the year.

Huawei Technologies Co. will spend twice as much money on research this year. The volume of appropriations will reach 22.1 billion dollars, which means that we expect new major developments and the release of flagships no later than 2023.

India follows the general trend and is in talks with global chip makers Intel Corp., GlobalFoundries Inc. and Taiwan Semiconductor Manufacturing Co., in an attempt to create a high-tech, high-demand manufacturing sector within itself.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

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