Flaunt Weekly
HomeEntertainmentAlphabet Stock News: GOOG jumps on layoffs affecting 6% of search giant’s workforce
Alphabet Stock News: GOOG jumps on layoffs affecting 6% of search giant’s workforce

Alphabet Stock News: GOOG jumps on layoffs affecting 6% of search giant’s workforce

  • Alphabet will lay off about 12,000 employees.
  • GOOG stock has benefited from the news on Friday.
  • Alphabet will focus on AI technolgy.
  • $102 is the next price target for GOOG bulls.

Alphabet (GOOG) stock advanced 3.7% to $97.40 on Friday after the paid search and online advertising behemoth announced 12,000 job cuts. Recent data suggests Alphabet, the parent company of Google, had 187,000 global employees, and critics have often suggested that Google has too many employees working on too many non-core segements of the business. The NASDAQ has raced ahead by 0.8% on the open after two sessions of losses.

Alphabet stock news

Alongside Microsoft’s (MSFT) recent announcement that it would let go of 10,000 workers and similar layoffs from When (WHEN) and Amazon (AMZN)Alphabet and these other named tech giants have downsized by more than 50,000 total workers in recent months. That does not even count fairly large redundancies from the likes of SalesForce (CRM) and Netflix (NFLX).

One important aspect of the recent job cuts in big tech is that nearly all these companies underwent rapid hiring during the pandemic and are now downsizing as management teams expect the Federal Reserve’s rapid tightening cycle to be reflected in a jolt to the economy in 2023. News earlier this week that December retail sales dropped -1.1% MoM have since fortified that thinking.

Alphabet CEO Sundar Pichai said in a statement that the layoffs would hit various “product areas, functions, levels and regions” of the conglomerate that houses Google Search, Gmail, YouTube and Android – to name just a few of its most well-known companies. Despite the cuts, Pichai said the streamlined company would emerge with a stronger focus on artificial intelligence.

Alphabet stock forecast

Alphabet stock gapped up on the open above $96 and now will think about retesting resistance at $102. Bulls probably need another catalyst to reach that price level however. GOOG stock last reached this price level on December 1 and last closed above it on October 25. If the excitement over Google’s job cuts dissipates, then expect GOOG to drop back to two support zones that surround $85.50 and $83.50. At the moment though, the Moving Average Convergence Divergence (MACD) indicator is just now crossing over in a bullish position above the zero threshold, so expect this rally to have legs since GOOG was already in an uptrend.

GOOG daily chart

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Read More

David Carroll

David Carroll is a Journalist at Flaunt Weekly.

Magazine made for you.