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Is the Google stock at risk as Elon Musk's Grok growth continues?
AlphabetAlphabet(US:GOOG) Invezzยท2025-04-16 08:17

Core Business Performance - Google stock price has dropped over 23% from its highest point this year, entering a bear market, with Alphabet's shares currently at $158 [1] - Alphabet's revenue for the fourth quarter exceeded $96 billion, marking a 12% increase year-over-year, bringing annual revenue to $350 billion, up from $307 billion [6] - The company reported a net income of over $100 billion, indicating strong profitability [6] Competitive Landscape - Alphabet has historically dominated key industries, including search engines, video platforms, and mobile operating systems, with Google Search being a near monopoly [2][3] - AI companies like ChatGPT and Grok pose a potential long-term threat to Google's market share, with Grok experiencing a rapid user growth of 269% in March, reaching over 190 million users [4][5] - Despite emerging competition, Google is expected to maintain growth due to its significant market share in the search engine industry [5] Strategic Moves - Google is expanding into the cybersecurity sector, recently announcing a $32 billion acquisition of Wiz, a notable increase from a previously considered $20 billion buyout [7] - Analysts suggest that Google stock is undervalued, with an average price estimate of $207 compared to the current price of $158, and a price-to-earnings ratio of 18, lower than its peers [7] Stock Price Analysis - Alphabet's stock has shown a strong bearish trend, forming a double-top pattern at $192 and a death cross, indicating further potential declines [11] - The stock is currently below the Ichimoku cloud indicator, with initial selling targets at this month's low of $142.9, and a drop below this level could lead to further declines towards $130 [11][12]