It wasn’t a rosy year for the most popular search engine in the world. Google has underperformed its tech peers and in particular the Nasdaq 100, with an index return of about 15 percent vs. 32 percent in 2020.
Although the COVID-19 pandemic disrupted business activities around major global economic hubs, on average, Google could not have been relatively impressive.
To date, the stock finds it hard to break the $1,600 resistance level and doesn’t show upside-down strength like other tech peers including Facebook, Apple, Amazon, and even Microsoft.
It’s no surprise that its recent earnings from its core business, Google Search, failed to excite investors, the largest contributor to revenue, as COVID-19 hit, with sales down-2 percent of YoY in Q2.
Technology juggernaut is the only FAANG (Facebook, Apple, Amazon, Netflix, Google) with revenue down the year-over-year period, even though its earnings trend remains strong.
In view of the failure of the stock to break the critical resistance level, the share price dropped from its 52 weeks high price level of $1,597.72 and remains the least choice among FAANG stocks.
Tropics Nigeria expects a stock price down to a mid-term support point of $1,550, except in its ads and hardware segments to raise revenues.
Recall Tropics NG, a few weeks ago, gave insights into why stock traders had not been relatively bullish on the stock market, due to growing concern that Google’s inability to raise its revenue from advertising was partly responsible for the unimpressive performance of its share price.
Quick Fact: Google Company is an American multinational tech juggernaut that handles web-related products and services, including search engines, cloud computing, online advertising technologies, software, and hardware.
For Google to adjust its current position, the stock might break the $1,600 resistance level before its next earnings and its payment services will eventually start to monetize.
Tropics Nigeria is actually not bragging on the stock price of Google, as its peers have recently made better capital returns. This means that Nairametrics is a good purchaser of the stock if the breach is less than $1,500.