Google stock in 2021 finally outperformed other “FANG” stocks. Google-parent Alphabet (GOOGL) bested Facebook-parent Meta Platforms (FB), Amazon.com (AMZN) and Netflix (NFLX).
Helping the online search giant was a rebound in digital advertising as the coronavirus emergency fades, boosting global economies as industries normalize. But 2022 has been a volatile year for the original FANG stocks.
Shares in Meta Platforms plunged on its fourth-quarter earnings report Feb. 3. Earlier, Netflix stock took a beating. Amazon stock managed to pop on its fourth-quarter earnings.
Meanwhile, GOOGL stock jumped 65% in 2021. Thus far in 2022, shares have dropped 13%, with shares at 2,519.02 before the market open on March 15.
Breaking below 2,490 would be bearish because GOOGL stock would be falling further beneath the 200-day moving average. A big break below the 200-day would imply sellers are still in command and that a longer, or deeper, correction is in the cards. Or both.
Google stock shot up on its fourth-quarter earnings report. But shares then pulled back amid volatility in the Nasdaq.
Google-parent Alphabet announced a 20-for-1 stock split, which takes effect after the close of business July 15. The stock split could pave the way for the tech giant to enter the Dow Jones Industrial Average. Retail investors should benefit.
GOOGL Stock: Tough Year-Over-Year Comparisons
Hiring and investments continue to ramp up for the company. Alphabet expects a “meaningful increase” in 2022 capital spending, reflecting investments in computer servers in internet data centers and construction of office space.
GOOGL stock will also face more difficult year-over-year growth comparisons in 2022 as the coronavirus emergency fades.
“We expect smaller beats in 2022 as search growth slows and operating expenses increase,” Bank of America analyst Justin Post said in a note to clients.
He added: “However, versus peers, Alphabet has more earnings stability, more potential exposure to an ongoing rebound in local and travel verticals, evidence of artificial intelligence advantages…