Alphabet Inc. (GOOGL) stock has now completed a breakout above the February high near $1,500 and could trade above $2,000 in coming weeks. It’s the last member of the FAANG quintet to hit new highs, restoring the leadership mystique of these Nasdaq 100 mega-caps. Even so, Alphabet remains vulnerable to cyclical forces, driven by a strong dependence on advertising revenue that has taken a hit due to the COVID-19 pandemic.
- Alphabet stock broke out to a new high at the end of August and could trade above $2,000.
- The rally has now reached five-year resistance above $1,700.
- Profits and revenues are highly dependent on economic cycles, due to heavy advertising exposure.
The stock market is “pricing in” a full economic recovery in 2021, but that might not be in the cards, given persistently high unemployment and recent surveys that indicate many small businesses won’t survive in the next