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# Google (GOOGL) Investment Analysis - CAN SLIM Framework **Date of Analysis:** June 1, 2025 **Ticker:** GOOGL (Alphabet Inc.) **Current Price (at time of analysis):** $171.74 (as of 2025-05-30 close) ## 1. Overall Market Sentiment (as of 2025-06-01) * **CNN Fear & Greed Index:** 61 (Greed) * **SPY/QQQ RSI (14-day & 6-day):** Neutral * **VIX:** 18.57 (Neutral, falling sharply from a week ago) * **Interpretation:** Market sentiment is generally leaning towards greed, but technical indicators suggest a more neutral stance. Not a strong directional signal for the overall market. ## 2. Macroeconomic Overview (as of 2025-06-01) * **Geopolitical/Trade:** Some tensions (US-China, US-EU trade) present. * **Interest Rates:** Fed expected to hold rates steady (4.25-4.50%) in June/July 2025. * **S&P 500:** +12.0% Change from Year Ago (as of 2025-05-30). * **10-Year Treasury Yield:** 4.43% (as of 2025-05-29). * **Real GDP Growth:** +2.1% Change from Year Ago (Q1 2025). * **CPI Inflation:** +2.3% Change from Year Ago (April 2025). * **Unemployment Rate:** 4.2% (April 2025). * **Interpretation:** Stable but mixed macro environment. Controlled inflation and low unemployment are positives. Trade tensions and interest rate levels are factors to monitor. ## 3. CAN SLIM Analysis for GOOGL * **C - Current Quarterly Earnings:** **Strong.** * Q1 2025 (ended 2025-03-31) Actual EPS: $2.81. * Beat consensus estimate of $2.01 by +$0.80 (a 40% surprise). * Previous quarters also showed positive surprises. * **A - Annual Earnings Increases:** **Strong.** * Q1 2025 EPS ($2.81) grew approximately **48.2%** year-over-year compared to Q1 2024 EPS ($1.896). * Company shows consistent revenue and profit growth. * **N - New Products, New Management, New Highs:** * **New Highs:** No. Current price ($171.74) is ~16.7% off its 52-week high of $207.05. * **New Products/Catalysts:** **Yes.** * Google AI Edge Gallery: App for running AI models locally on phones. * Waymo: Self-driving car company reached 10 million rides. * **Management:** Stable, no major recent changes noted. * **Concerns/Risks:** * Ongoing antitrust investigations and potential for forced divestitures (e.g., ad manager). * Potential for new digital taxes (e.g., Germany considering 10% tax). * General AI disruption concerns, though Google maintains dominant search market share. * **S - Supply and Demand (Price/Volume Action):** **Positive.** * **Trend:** Short-term (7-day SMA) above longer-term (30-day SMA). 20-day SMA and EMA show moderate upward trends. MACD indicates a strong upward trend. * **Volume Confirmation:** On-Balance Volume (OBV) and Accumulation/Distribution (A/D) line show strong upward trends, supporting the price increase. * **Momentum:** RSI (14) at 60.59 (Neutral), but with a strong upward recent slope. * **Recent Pattern:** Doji detected on 2025-05-30, suggesting potential short-term indecision or consolidation. * **Volatility:** Bollinger Band Width shows a strong downward trend (decreasing volatility). * **L - Leader or Laggard:** **Leader.** * Dominant market position in internet search, online advertising, cloud computing, and emerging AI technologies. * **I - Institutional Sponsorship:** **Strong, but with mixed recent activity.** * **Holders:** Top-tier institutions (Vanguard, BlackRock, State Street, FMR, etc.). * **Recent Activity (Q1 2025 filings):** * **Additions:** Vanguard, BlackRock, Geode, Morgan Stanley, BoA, JPMorgan, UBS, Amundi increased positions. Norges Bank initiated a large new position (Q4 2024 filing). * **Reductions:** FMR (Fidelity), T. Rowe Price, Wellington, Capital Research Global, Fisher Asset Management trimmed positions. * Overall, high-quality sponsorship remains, but not unanimously bullish in the latest filings. * **M - Market Direction:** **Neutral to leaning positive.** (As detailed in Section 1). ## 4. Valuation & Other Key Metrics (as of 2025-05-30) * **Market Cap:** ~$2.09 Trillion * **Trailing P/E:** 19.17 * **Forward P/E:** 19.17 * **PEG Ratio:** 1.32 * **Comparison:** P/E ratios are significantly lower than Sector (Communication Services: P/E 32.19) and Industry (Internet Content & Information: P/E 37.01) averages, suggesting relative undervaluation. * **Profitability:** Excellent (ROE 34.79%, Profit Margin 30.86%). * **Balance Sheet:** Strong (Debt/Equity 8.25, Current Ratio 1.77). * **Dividend Yield:** 0.49% ## 5. Analyst Sentiment (as of 2025-05-30) * **Analyst Count:** 52 * **Mean Target Price:** $201.47 (~17.3% upside from current price) * **High Target:** $250.00 * **Low Target:** $160.00 * **Recommendation:** Strong Buy consensus (16 Strong Buy, 40 Buy, 12 Hold, 0 Sell/Strong Sell). ## 6. Investment Recommendation Based on the comprehensive CAN SLIM analysis, Google (GOOGL) presents a strong investment case. The company excels in current and annual earnings growth (C & A), holds a clear leadership position (L), and shows positive supply/demand dynamics in its stock (S). New product developments in AI and Waymo offer further catalysts (N). While not currently at a new 52-week high, and facing some regulatory headwinds (N) and mixed recent institutional buying (I), the overall picture is favorable. The valuation appears reasonable compared to peers. **Recommendation: Selectively add to your Google position.** * Consider an initial partial addition at current levels. * Monitor for potential short-term pullbacks (e.g., towards $170.75, $169.25, or the 20-day SMA around $164.53) for further additions, provided the uptrend remains intact. * Stay informed on antitrust developments and AI competition. ## 7. Stop-Loss Strategy For new additions, consider a stop-loss to manage risk. Based on current technicals: * **Recommended Stop-Loss Level:** Around **$162.50**. * This is below the recent swing low of $162.90 (2025-05-20) and the 20-day SMA (~$164.53). * Represents a potential risk of ~5.4% from the current price of $171.74. * **Alternative Tighter Stop:** Around $163.90 (below 20-day SMA, ~4.6% risk). * **Alternative Wider Stop:** Around $159.50 (below 50-day SMA, ~7.1% risk). Adjust position size according to your chosen stop-loss to align with your risk management plan.