Google stock inks 52-week high: Uncovering the driving forces behind the tech giant
The tech sector has made a remarkable comeback in 2023, driven by the AI industry surge and the performance of top tech companies like Nvidia, Meta Platforms, and Alphabet. Despite adverse external factors, the US stock market has shown resilience, indicating a promising signal for the Q4 stock market rally. Google's stock has reached a new 52-week high and faces resistance at $143.65.
The tech sector has experienced a remarkable resurgence in 2023 after facing challenges in the previous year. This resurgence can be attributed to the ongoing surge in the artificial intelligence (AI) industry. The leading tech companies, known as 'The Magnificent Seven,' have played a crucial role in driving the recovery of the S&P 500.
Among these tech giants, Nvidia and Meta Platforms, the parent company of Facebook, have particularly excelled with their share prices surging by triple digits year-to-date. While not reaching the same heights, Alphabet, Google's parent company, has also thrived in the tech resurgence of 2023. On October 11, Alphabet achieved a fresh 52-week high, solidifying the sector's recovery.
According to data retrieved from TradingView on October 12, Alphabet's stock soared to $141.11, marking a new 52-week high and the highest point since April 2022. Meta Platforms, Alphabet's tech peer, also reached a fresh 52-week high on the same day.
Alphabet's stock upswing occurred during a strong session for the tech sector and the broader US market. Despite unfavorable economic data and geopolitical developments, such as a hotter-than-expected jobs report and a clash between Hamas and Israel, US stocks experienced a significant rise in the past few days. The S&P 500 index and the Nasdaq composite climbed 2.76% and 3.26% since Friday, October 6, showcasing resilience in US stocks.
Puru Saxena, a former hedge manager and investor, sees this bullish performance in the face of adverse external factors as a promising signal for the seasonal Q4 stock market rally.
At the time of publication, Alphabet's shares were valued at $140.55, representing a 1.8% increase for the day. Over the past week, the stock gained approximately 4% and around 3.8% on the monthly chart. Year-to-date, the tech giant's stock has soared by over 57%, pushing its market cap to approximately $1.78 trillion.
With its 52-week high at $141.11, Alphabet now faces an 18-month resistance at $143.65. If the stock manages to surpass this barrier, it could target the next major resistance level at $151.5.
On the downside, Google's shares have a support threshold at $139.14, indicating a potential increase in buying pressure if the stock experiences a downturn. Additionally, the stock is currently trading above the 100-day simple moving average (SMA) at $128.
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