# Alphabet Inc Class C (GOOG)

Alphabet Inc. is an American multinational conglomerate headquartered in Mountain View, California. It was created through a restructuring of Google on October 2, 2015, and became the parent company of Google and several former Google subsidiaries. The two co-founders of Google remained as controlling shareholders, board members, and employees at Alphabet. Alphabet is the world's fourth-largest technology company by revenue and one of the world's most valuable companies.

## Stock Price Trends

Stock price trends estimated using linear regression.

#### Key facts

• The primary trend is increasing.
• The growth rate of the primary trend is 49.90% per annum.
• GOOG price at the close of August 7, 2024 was \$160.75 and was lower than the bottom border of the primary price channel by \$3.23 (1.97%). This indicates a possible reversal in the primary trend direction.
• The secondary trend is decreasing.
• The decline rate of the secondary trend is 86.84% per annum.
• GOOG price at the close of August 7, 2024 was inside the secondary price channel.
• The direction of the secondary trend is opposite to the direction of the primary trend. This indicates a possible reversal in the direction of the primary trend.

### Linear Regression Model

Model equation:
Yi = α + β × Xi + εi

Top border of price channel:
Exp(Yi) = Exp(a + b × Xi + 2 × s)

Bottom border of price channel:
Exp(Yi) = Exp(a + b × Xi – 2 × s)

where:

i - observation number
Yi - natural logarithm of GOOG price
Xi - time index, 1 day interval
σ - standard deviation of εi
a - estimator of α
b - estimator of β
s - estimator of σ
Exp() - calculates the exponent of e

### Primary Trend

Start date: October 26, 2022
End date: August 1, 2024

a = 3.1880

b = 0.0011

s = 0.0567

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0011) – 1
= 49.90%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0567) – 1
= 25.45%

#### October 26, 2022 calculations

Top border of price channel:

Exp(Y811)
= Exp(a + b × X811 + 2 × s)
= Exp(a + b × 1,175 + 2 × s)
= Exp(3.1880 + 0.0011 × 1,175 + 2 × 0.0567)
= Exp(4.6045)
= \$99.93

Bottom border of price channel:

Exp(Y811)
= Exp(a + b × X811 – 2 × s)
= Exp(a + b × 1,175 – 2 × s)
= Exp(3.1880 + 0.0011 × 1,175 – 2 × 0.0567)
= Exp(4.3778)
= \$79.66

#### August 1, 2024 calculations

Top border of price channel:

Exp(Y1,253)
= Exp(a + b × X1,253 + 2 × s)
= Exp(a + b × 1,820 + 2 × s)
= Exp(3.1880 + 0.0011 × 1,820 + 2 × 0.0567)
= Exp(5.3198)
= \$204.35

Bottom border of price channel:

Exp(Y1,253)
= Exp(a + b × X1,253 – 2 × s)
= Exp(a + b × 1,820 – 2 × s)
= Exp(3.1880 + 0.0011 × 1,820 – 2 × 0.0567)
= Exp(5.0931)
= \$162.89

#### Description

• The primary trend is increasing.
• The growth rate of the primary trend is 49.90% per annum.
• GOOG price at the close of August 7, 2024 was \$160.75 and was lower than the bottom border of the primary price channel by \$3.23 (1.97%). This indicates a possible reversal in the primary trend direction.

### Secondary Trend

Start date: July 5, 2024
End date: August 7, 2024

a = 15.2380

b = -0.0056

s = 0.0193

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0056) – 1
= -86.84%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0193) – 1
= 8.04%

#### July 5, 2024 calculations

Top border of price channel:

Exp(Y1,234)
= Exp(a + b × X1,234 + 2 × s)
= Exp(a + b × 1,793 + 2 × s)
= Exp(15.2380 + -0.0056 × 1,793 + 2 × 0.0193)
= Exp(5.3130)
= \$202.95

Bottom border of price channel:

Exp(Y1,234)
= Exp(a + b × X1,234 – 2 × s)
= Exp(a + b × 1,793 – 2 × s)
= Exp(15.2380 + -0.0056 × 1,793 – 2 × 0.0193)
= Exp(5.2357)
= \$187.85

#### August 7, 2024 calculations

Top border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 + 2 × s)
= Exp(a + b × 1,826 + 2 × s)
= Exp(15.2380 + -0.0056 × 1,826 + 2 × 0.0193)
= Exp(5.1296)
= \$168.95

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(15.2380 + -0.0056 × 1,826 – 2 × 0.0193)
= Exp(5.0523)
= \$156.38

#### Description

• The secondary trend is decreasing.
• The decline rate of the secondary trend is 86.84% per annum.
• GOOG price at the close of August 7, 2024 was inside the secondary price channel.