The worst performing FAANG stock in 2020 is now leading the pack.
Google’s parent Alphabet has gone up 20% this year. It had gained around 30% in 2020, with little to no downside to other FAANG stocks – Facebook, Apple, Amazon and Netflix.
Citi on Friday increased its price target to $ 2,415 a pound on free cash flow estimates. That means 15% upside down since Friday’s close.
Alphabet bull Danielle Shay, options director at Simpler Trading, says the company has a secret weapon – YouTube’s online video hub.
“YouTube is huge, and you have a situation where we have seen this pandemic online.… This is just a trend that is going to continue into the future. I don’t think we’re going to make it go back to the way things were pre-pandemic, ”Shay told CNBC’s“ Trading Nation ”on Friday.
Alphabet reported that YouTube advertising rose 46% in the fourth quarter from a year earlier, generating nearly $ 7 billion in revenue.
“Google has been a leader in this field, they don’t have competition of any kind – yes, companies can try to create their own paths, but I think Google is going to keep them as director, “said Shay.
Craig Johnson, chief market technician at Piper Sandler, will also see further growth for the Alphabet shares.
“It can go a lot higher here, and when you look at all those FAANG stocks, I mean it’s been among the most helpful names,” Johnson said during the same interview.
“Look at the chart in the long run – the main trend is higher. You are over 50 [day moving average], you’re above your 200-day moving average, the relative strength move has broken out, so if you’re looking for an alpha in the big cap space, Alphabet is a name and let ‘s continue as a customer of it, “Johnson said.
Alphabet has gone up 15% this month; the S&P 500 is up 6%.
Disclosure: Simplified Trading maintains GOOGL.
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