Google Stock Nears Breakout as Institutional Buying Accelerates

After reporting $12.56 billion in new investments from top mutual funds last month, Alphabet (GOOGL), Google's parent company, saw another $2.37 billion in stock purchases by leading money managers this month. That strong institutional buying pushed shares near their buy range to end the week.

Further signs of investor interest include Alphabet’s 1.6 up/down volume ratio and an A- Accumulation/Distribution Rating. The company also holds a top-tier 99 Composite Rating, indicating it’s outperforming 99% of all other stocks based on key investing metrics.

Alphabet, known for its dominance in search, cloud computing, and artificial intelligence, is also seeing solid momentum from its YouTube and cloud businesses. The company has posted an average earnings growth of 28% over the past three years, with earnings growing nearly 20% over the past three quarters.

In Q3, Alphabet surpassed $100 billion in revenue for the first time, with a 16% year-over-year increase bringing total revenue to $102.3 billion. For Q4, analysts project another 16% revenue jump to $111.1 billion and a 22% rise in earnings to $2.63 per share. Full-year expectations sit at 36% earnings growth, reaching $10.63 per share.

While Alphabet’s primary advertising business continues to recover, its autonomous vehicle unit, Waymo, may become a meaningful revenue source, though the company hasn't disclosed specific financials for that segment.

Google shares are currently trading above their 21-day exponential moving average and a rising 50-day line, forming an early-stage flat base. The buy point is set at 328.83, and shares are approaching that level.

Despite some pullback during the formation of this base, the relative strength line remains close to a 52-week high.