CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

Alarm bells absent from Alphabet ad miss

Article By: ,  Financial Analyst
April 30, 2020 1:09 PM

On balance, fallout looks set to be tempered.

Alphabet’s first-quarter revenue miss hinged on lighter-than-forecast advertising vs. notable growth at Facebook, and newer ad market entrant, Amazon. Amazon’s “other” segment—mostly advertising—jumped 34% to $2.72bn in Q1. At Alphabet, non-partner ad revenue grew 15%, the slowest since 2015. Total revenues were somewhat under Wall Street’s $30.04bn expectation. Net income also suggests Google bears the brunt of a digital ad market transformation. Profits were $6.6bn vs. $9.4bn in Q1 2018. A $1.7bn EU fine dented the bottom line, whilst CFO Ruth Porat blamed FX headwinds for some of the sales miss. Hyper spending to patch-up YouTube and scale cloud also played a part. All told, Alphabet’s 8% stock slump shows markets are re-rating expectations after Google’s 12-quarter ad boom, though it looks early to call time on stellar growth. Moderate falls by rival web giant stocks back the idea of a broadening ad market rather than a narrowing one. The consequent Nasdaq 100 decline is around 1%; not quite a ‘rout’ so far.

Alphabet shares nix the clean rising trend since end-2018. The speed of the move argues against a gap fill happening soon. Instead focus should be on the 38.2% Fibonacci interval of the rise since late-December. It was flagged as sensitive by a proximate reversal early in March. There’s now a decent chance of support. If not, and should the 200-day trend gauge also cave, December’s swing low of $980 would be in play. By then though, alarm bells would be ringing across the entire market.

Alphabet ‘A’ CFD – Daily 30/04/2019 17:01:32

Source: City Index

 

 

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024