Alphabet heads for $ 2 trillion in market capitalization

Alphabet heads for $ 2 trillion in market capitalization

Google’s parent company Alphabet is nearing a milestone, with Apple and Microsoft looking to join the $ 2 trillion market capitalization club.

Also on Thursday, the stock hit a record high for the fourth day in a row.

But, after rising more than 60% this year, warns Matt Maley, chief market strategist at Miller Tabak.

“It’s happening too much,” he told CNBC’s “Trading Nation” Thursday. “Even the best companies, their stocks outperform in the short term. “

Alphabet is by far the best-performing among high-growth FAANG stocks in 2021, nearly doubling the earnings of the second-best-performing Facebook.

“The weekly RSI is now pushing 85. It’s the most overbought ever. And not only that, if you look at its 200-week moving average, it’s almost 98% below its 200-week moving average. As a bonus, the next closest is at 76% so it’s growing here in the very, very short term, ”Maley said.

“I’m not saying people should sell stocks and, God forbid, you certainly shouldn’t sell them short. But people who like the stock will be able to avoid hunting it here and it’s a little cheaper in the coming weeks, ”Maley said.

However, the longer-term story still looks solid for Alphabet, says Boris Schlossberg, Managing Director of FX Strategy at BK Asset Management.

“Of all the FAANG stocks, this is probably the best winning attribute of all,” he said in the same interview. “It dominates search, YouTube gets more minutes than TV broadcast, its cloud business is very strong and is expected to grow 40% overall next year. “

One of his business ventures looks particularly promising for Schlossberg in the long term.

“The ace in the hole for me is really Waymo. Now I know automated driving has become a topic… skeptical and controversial, but now they are testing taxis in San Francisco, after testing in Phoenix, being very transformative, ”Schlossberg said.

“This adds yet another reason that Google is going to be a great stock for next year,” he said.

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