As far as blue chip large cap technology companies go, Google parent Alphabet Inc. (NASDAQ:GOOG) remains one of my top picks for investors to keep on their watch lists at all times for buying opportunities.
This is a stock I sincerely hope readers picked up on the dip the coronavirus pandemic has provided, but if one missed the boat, there could be a number of catalysts on the horizon that could take this stock higher in the near-term. I would therefore suggest doing one’s homework, but acting quickly should one want to start building a position, maybe adding some exposure now and waiting to see what happens in the future.
One key development on the horizon for investors is an approval which is expected from the European Union for the company’s takeover of Fitbit (NYSE:FIT) which was recently announced. This takeover has the potential to drive increased revenue diversification as Alphabet continues to struggle with building its portfolio of business that is not tethered to advertising.
With advertising revenues still making up approximately 80% of the company’s revenues, investors have largely cheered this transaction, and the market could validate this purchase should approval be granted as expected in the near future.
Another key focal point for investors has to be the company’s performance in its upcoming quarterly reports. With Alphabet’s revenue and profit beating expectations of late despite a pandemic which was expected to hinder growth on the top and bottom line, should this outperformance continue, we could see more in the way of stock price appreciation on the horizon.
Invest wisely, my friends.