Tag Archives: NASDAQ:GOOGL

Alphabet Inc Stock Will Continue to Rise… After a Brief Pause

Did you know that Alphabet Inc (NASDAQ:GOOG, NASDAQ:GOOGL) went skidding into the end of 2017? Some investors may not have noticed the underperformance in Google stock, as it stumbled up to and through the holiday trading periods. On Dec. 18, Alphabet stock leaped to new all-time highs, before declining for eight straight days to end the year.

That’s a pretty notable losing streak, although it flew mostly under the radar. It also shouldn’t take away from the stellar 2017 GOOGL enjoyed, climbing 33%. Jump over to 2018 and Google stock has spent its time rallying. Through Thursday, GOOGL shares were up 5.5% in the new year.

In fact, most of the FANG stocks have been hot, with Facebook Inc (NASDAQ:FB), Netflix, Inc. (NASDAQ:NFLX) and Amazon.com, Inc. (NASDAQ:AMZN) all starting the year off with a rally too.

So, what do we make of Google stock?

Like FB, and unlike NFLX and AMZN, GOOGL stock trades with a reasonable valuation given its earnings and revenue growth.

A Closer Look at GOOGL Stock

At first glance, Google stock appears expensive, trading at about 36 times its trailing earnings. However, its forward price-to-earnings (P/E) ratio is considerably lower, at 26. Analysts expect $41.56 in earnings per share for 2018, up ~29% year-over-year (YoY).

I don’t really like to look too far into the future. Because of Alphabet’s consistency, though, I couldn’t help but peak at 2019 estimates. Analysts forecast earnings per share of $48.64, up 17% YoY. In other words, Alphabet stock trades at just 22.5 times 2019 earnings estimates. Even though there’s a risk that these estimates are too high, I think it’s a real possibility that they’re too low.

In either case, we have a stock that’s growing earnings in the high-teens to low-20% range for the foreseeable future. Add in the fact that revenue will grow about 22% this year and 20% in 2018 and it’s hard to be bearish on GOOGL stock.

I also couldn’t help but take a look at the search giant’s cash flow. Operating cash flow (OCF) over the trailing 12 months sits at just over $36 billion. That’s more than one-third higher than where it sat at calendar-year-end 2015. It’s roughly double where it stood four years ago.

Likewise, the company’s trailing free-cash flow hit $27.50 billion, up more than 60% over the past 18 months. The impact of Ruth Porat, who joined Alphabet as CFO in 2015, should not be overlooked.

Google Stock Valuation

One thing I’ve never understood is the blue-chip mantra. Some investors tell me that buying Procter & Gamble Co (NYSE:PG) or Johnson & Johnson (NYSE:JNJ) is a sound choice, but they argue that buying a company like Alphabet or Facebook is foolish, as these stocks are too expensive.

They contend that PG, JNJ and others are blue-chip stocks with long histories of dividend payouts and an elite brand name. I don’t argue with any of that. However, is Google not considered to have one of the most powerful brands in the entire world? Further, is its forward P/E ratio of 26 and earnings growth of 20% not reasonable — even desirable — when compared to PG’s forward P/E ratio of 20 and earnings growth of 7%?

I don’t mean this a put-down of blue-chip stocks. Rather, it’s to point out other companies — absent a long history of dividends — deserve some premium for their brands too. Google fits that bill in my opinion, helping to justify its valuation.

Trading Alphabet Stock

As for the stock, we’ve got a relatively clean breakout. It’s important how it reacts now. In early December, Google stock had the perfect decline down to support, which held steady. After a big move over $1,090 to hit new all-time highs, Google stock is pulling back. While it’s still over this level, it’s unclear whether it will hold now or retreat.

chart of Google stockinvestorplace.com/wp-content/uploads/2018/01/GOOGL-768×574.png 768w, investorplace.com/wp-content/uploads/2018/01/GOOGL-40×30.png 40w, investorplace.com/wp-content/uploads/2018/01/GOOGL-200×150.png 200w, investorplace.com/wp-content/uploads/2018/01/GOOGL-400×300.png 400w, investorplace.com/wp-content/uploads/2018/01/GOOGL-116×87.png 116w, investorplace.com/wp-content/uploads/2018/01/GOOGL-100×75.png 100w, investorplace.com/wp-content/uploads/2018/01/GOOGL-167×125.png 167w, investorplace.com/wp-content/uploads/2018/01/GOOGL-67×50.png 67w, investorplace.com/wp-content/uploads/2018/01/GOOGL-78×58.png 78w,https://investorplace.com/wp-content/uploads/2018/01/GOOGL-800×598.png 800w, investorplace.com/wp-content/uploads/2018/01/GOOGL-160×120.png 160w, investorplace.com/wp-content/uploads/2018/01/GOOGL.png 900w” sizes=”(max-width: 300px) 100vw, 300px” />
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Based on how it looks — because of that upper trend-line resistance — a pullback is looking more and more likely. Make no mistake, though, that’s actually healthy price action. While bullish traders can try to eek out a bit more on the upside, a longer-term swing looks more appropriate.

Aggressive buyers can step in now and add on a decline. More conservative investors can hope for a pullback and begin accumulating Google stock cheaper.

This is a great company and a stock that’s clearly looking to push higher. Don’t try to get too cute regarding when to buy.

Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities.

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Yum! Brands, Inc. Is Transforming Into a High-Growth Company Again

It is an exciting time at Yum! Brands, Inc. (NYSE:YUM).

That may seem weird to say. The fast-food giant behind KFC, Pizza Hut and Taco Bell is often written off as less exciting than the likes of hyper-growth tech companies like Facebook Inc (NASDAQ:FB), Amazon.com, Inc. (NASDAQ:AMZN), Netflix, Inc. (NASDAQ:NFLX) and Alphabet Inc (NASDAQ:GOOG, NASDAQ:GOOGL).

But here’s a fun fact: YUM’s projected earnings growth over the next several years (14.6%) isn’t that much lower than Facebook’s (17.4%).

How is that possible? YUM is innovating, adapting and transforming like never before. More specifically, the company is fully embracing a revolutionary transformation of its business model, which could handsomely reward long-term shareholders.

So whats the takeaway?

Buy and hold YUM stock. This one is going up in the long term.

Re-Franchising Efforts Are Paying Off

Late last year, YUM announced a massive business transformation plan which management believes will dramatically improve profitability.

In short, YUM is turning into a “pure-play” franchisor. The company is re-franchising essentially all of its locations (98%, to be exact, up from 77% franchise ownership in 2015). Yes, that kills revenues, but this revenue slicing is like getting rid of all the unwanted fat. Through re-franchising, YUM plans to create a business with low costs, few capital investments needs, small lease obligations, big margins, lots of free cash flow and huge earnings.

This transformation is already paying off.

YUM is currently at 95% franchise ownership. The huge re-franchising over the past 12 months has allowed for tremendous cost savings. Company restaurant expenses are down 10% year to date. General and administrative expenses are down 9% year to date. Operating margins are up 410 basis points at KFC, 600 basis points at Pizza Hut and 340 basis points at Taco Bell.

Consequently, even though YUM revenues year to date are down 4%, operating profits are up 33%.

Meanwhile, capital expenditures are at only $228 million year to date, versus $292 million through the first nine months of 2016. Capex is expected to be just $325 million this year, a near-25% reduction year over year.

The most exciting part of this transformation plan is that the best is yet to come. The G&A expense rate is expected to drop to 1.7% by 2019, versus 2.5% in 2015. Capex is expected to fall to $100 million by 2019.

With all those costs coming out of the system, the net result will be lots of profits and lots of cash flow. Most that cash flow will be returned to shareholders via dividends and buybacks, which will, in turn, fuel earnings growth and increase shareholder value (management expects to return between $6.5 and $7 billion to shareholders from 2017 to 2019).

Meanwhile, YUM’s brands are actually performing quite well, likely due to management’s ability to focus on same-store sales growth (as opposed to volatile China numbers). For the first time in multiple quarters, same-store sales growth was positive last quarter at KFC, Pizza Hut and Taco Bell. Moreover, system sales growth hit 6% for the second consecutive quarter, showing that the company has the ability to accelerate system sales growth to 7% in the near future.

Put it all together, and you have a company with an accelerating top-line growth narrative and a really big margin growth narrative. Why sell a stock with such strong growth drivers?

Valuation Is Still Reasonable

You don’t, unless valuation is a concern.

But it isn’t here. YUM is looking at greater than $3.75 in earnings per share by fiscal 2019. Historically, YUM stock has traded around 28 times trailing earnings. Given that YUM, in 2019, will have higher profit margins and more predictable cash flows than the YUM of the past 5 years, its almost a guarantee that 2019 YUM will warrant at least a 28 trailing-earnings multiple.

Throw a 28 mulitple on $3.75 earnings, and you get a 2-year forward price target of $105. Discount that by 10% per year and you arrive at a current fair value of about $87.

And that is without tax reform.

Bottom Line on YUM Stock

This is a big-moat company successfully undergoing a massive transformation, which will dramatically boost profitability and cash flows.

You don’t sell that story unless the stock is overvalued.

But YUM stock remains reasonably valued. Consequently, I think this is a name you buy and hold for the long term.

As of this writing, Luke Lango was long YUM, FB, AMZN, NFLX, and GOOG.

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7 AI Stocks to Buy to Join the Next Technological Revolution

The artificial intelligence (AI) revolution is picking up speed. Before we know it, AI will be part of our everyday lives. “We are at a pivotal point for its adoption today due to the availability of big data, high-powered computing and advances in algorithms — which all make AI cheaper and faster to implement,” says JP Morgan analyst Stacy Pollard.

She calculates that the AI-related hardware, software and services market could hit $58 billion by 2021 from just $12 billion this year. Indeed, market experts say artificial intelligence will lead the next wave of economic growth and productivity for at least the next couple of decades.

Here, I take a closer look at seven top stock ideas with big AI exposure. To find the best investing opportunities in AI right now, I pinpointed seven stocks with a “Strong Buy” consensus rating from the Street’s top analysts.

These are analysts with the highest success rate and average return. By limiting the ratings to only top analysts, I was able to cut out analysts with poor track records. These “Strong Buy” stocks are also more likely to have big upside potential. Of course, Nvidia Corporation (NASDAQ:NVDA) is a great AI stock, but it only has a cautiously optimistic Street outlook. For this reason I focus below on these more bullish stock picks.

Top AI Stocks to Buy: Facebook (FB)

Top AI Stocks to Buy: Facebook (FB)investorplace.com/wp-content/uploads/2017/12/ai-1-300×79.png 300w, investorplace.com/wp-content/uploads/2017/12/ai-1-768×201.png 768w, investorplace.com/wp-content/uploads/2017/12/ai-1-1024×268.png 1024w, investorplace.com/wp-content/uploads/2017/12/ai-1-65×17.png 65w, investorplace.com/wp-content/uploads/2017/12/ai-1-200×52.png 200w, investorplace.com/wp-content/uploads/2017/12/ai-1-400×105.png 400w, investorplace.com/wp-content/uploads/2017/12/ai-1-116×30.png 116w, investorplace.com/wp-content/uploads/2017/12/ai-1-100×26.png 100w, investorplace.com/wp-content/uploads/2017/12/ai-1-150×39.png 150w,https://investorplace.com/wp-content/uploads/2017/12/ai-1-78×20.png 78w, investorplace.com/wp-content/uploads/2017/12/ai-1-800×210.png 800w, investorplace.com/wp-content/uploads/2017/12/ai-1-170×45.png 170w” sizes=”(max-width: 1209px) 100vw, 1209px” />

JP Morgan recently pinpointed Facebook Inc (NASDAQ:FB) as one of its top 5 AI stock picks: “Mark Zuckerberg considers AI to be one of the company’s 10-year bets, and believes that AI should replicate — and exceed — human senses such as vision and hearing so that FB is better able to serve users. … FB is working on applying computer vision techniques to organize content and provide the ability to classify live videos in real time” the firm explained.

Five-star JP Morgan analyst Doug Anmuth assigned a buy rating and bullish $225 price target to FB last month (31% upside).

FB is not short of Street support; in fact, the stock boasts 28 buy ratings in the last three months alongside 1 hold rating and 1 sell rating. With an average analyst price target of $208.59, analysts are predicting upside of 21% from the current share price.

Also note that FB has just received its highest price target of $240 from MKM Partners’ Rob Sanderson. He cites FB’s “surprisingly strong Q3 topline” and says the consensus of an expense ramp looks overly aggressive.

Top AI Stocks to Buy: Oracle (ORCL)

Top AI Stocks to Buy: Oracle (ORCL)investorplace.com/wp-content/uploads/2017/12/ai-2-300×79.png 300w, investorplace.com/wp-content/uploads/2017/12/ai-2-768×201.png 768w, investorplace.com/wp-content/uploads/2017/12/ai-2-1024×268.png 1024w, investorplace.com/wp-content/uploads/2017/12/ai-2-65×17.png 65w, investorplace.com/wp-content/uploads/2017/12/ai-2-200×52.png 200w, investorplace.com/wp-content/uploads/2017/12/ai-2-400×105.png 400w, investorplace.com/wp-content/uploads/2017/12/ai-2-116×30.png 116w, investorplace.com/wp-content/uploads/2017/12/ai-2-100×26.png 100w, investorplace.com/wp-content/uploads/2017/12/ai-2-150×39.png 150w,https://investorplace.com/wp-content/uploads/2017/12/ai-2-78×20.png 78w, investorplace.com/wp-content/uploads/2017/12/ai-2-800×210.png 800w, investorplace.com/wp-content/uploads/2017/12/ai-2-170×45.png 170w” sizes=”(max-width: 1209px) 100vw, 1209px” />

Database giant Oracle Corporation (NYSE:ORCL) uses AI and machine learning across many parts of its cloud applications. Most notably, Oracle is now using AI and machine learning to automate administration of its latest Oracle Database 18c.

And with this new self-driving database technology, the company has created the world’s first autonomous cloud.

“This is the most important thing we’ve done in a long, long time,” states ORCL CTO Larry Ellison. “The automation does everything. We can guarantee availability of 99.995 percent, less than 30 minutes of planned or unplanned downtime.”

The cloud eliminates human labor, human error and the need for manual tuning.

This ‘Strong Buy’ stock has received 16 buy ratings and 3 hold ratings in the last three months. Given that the stock is currently trading at $48.40, the $59.22 average analyst price target translates into upside potential of 22%.

Drexel Hamilton’s Brian White has a buy rating and $62 price target on the stock. He believes the new innovations “can take the company’s cloud portfolio to a whole new level.”

Top AI Stocks to Buy: Twilio (TWLO)

Top AI Stocks to Buy: Twilio (TWLO)investorplace.com/wp-content/uploads/2017/12/ai-3-300×79.png 300w, investorplace.com/wp-content/uploads/2017/12/ai-3-768×201.png 768w, investorplace.com/wp-content/uploads/2017/12/ai-3-1024×268.png 1024w, investorplace.com/wp-content/uploads/2017/12/ai-3-65×17.png 65w, investorplace.com/wp-content/uploads/2017/12/ai-3-200×52.png 200w, investorplace.com/wp-content/uploads/2017/12/ai-3-400×105.png 400w, investorplace.com/wp-content/uploads/2017/12/ai-3-116×30.png 116w, investorplace.com/wp-content/uploads/2017/12/ai-3-100×26.png 100w, investorplace.com/wp-content/uploads/2017/12/ai-3-150×39.png 150w,https://investorplace.com/wp-content/uploads/2017/12/ai-3-78×20.png 78w, investorplace.com/wp-content/uploads/2017/12/ai-3-800×210.png 800w, investorplace.com/wp-content/uploads/2017/12/ai-3-170×45.png 170w” sizes=”(max-width: 1209px) 100vw, 1209px” />

Cloud communications app maker Twilio Inc (NYSE:TWLO) recently reported stronger than expected Q3 results and it had a better than expected Q4 outlook. As a result, analysts are feeling bullish on the stock’s potential to play catch up following a year of meaningful under-performance.

Top analyst Brian White says, “Based on our 2017 revenue estimate, Twilio holds less than 1% share of this $45.4 billion market and has a big opportunity ahead of it.” And part of this “catch up” could stem from the stock’s growing AI capabilities.

In October, Twilio announced the general availability of its Speech Recognition capabilities. This “enables users to convert speech to text and analyze intent during any voice call,” according to JP Morgan.

The firm adds that “Twilio’s Automated Speech Recognition uses Google’s Cloud Speech API, which supports various languages.” As a result, JP Morgan also lists Twilio as one of its top 5 AI stocks.

In the last three months, analysts have published 7 buy ratings and 1 hold rating on Twilio. These analysts are predicting (on average) big upside potential of TWLO of over 50% from the current share price. Given this potential, I believe this is a top stock to keep a close eye on over the next few months.

Top AI Stocks to Buy: Palo Alto Networks (PANW)

Top AI Stocks to Buy: Palo Alto Networks (PANW)investorplace.com/wp-content/uploads/2017/12/ai-4-300×79.png 300w, investorplace.com/wp-content/uploads/2017/12/ai-4-768×201.png 768w, investorplace.com/wp-content/uploads/2017/12/ai-4-1024×268.png 1024w, investorplace.com/wp-content/uploads/2017/12/ai-4-65×17.png 65w, investorplace.com/wp-content/uploads/2017/12/ai-4-200×52.png 200w, investorplace.com/wp-content/uploads/2017/12/ai-4-400×105.png 400w, investorplace.com/wp-content/uploads/2017/12/ai-4-116×30.png 116w, investorplace.com/wp-content/uploads/2017/12/ai-4-100×26.png 100w, investorplace.com/wp-content/uploads/2017/12/ai-4-150×39.png 150w,https://investorplace.com/wp-content/uploads/2017/12/ai-4-78×20.png 78w, investorplace.com/wp-content/uploads/2017/12/ai-4-800×210.png 800w, investorplace.com/wp-content/uploads/2017/12/ai-4-170×45.png 170w” sizes=”(max-width: 1209px) 100vw, 1209px” />

Palo Alto Networks Inc (NYSE:PANW), a next-generation security platform company, claims that effective machine learning can help prevent malware and protect endpoints.

“The most promising weapon in the endpoint security arsenal is machine learning, with its ability to quickly learn, make instant decisions and enable rapid response to prevent threats rather than dealing with them during execution or after the fact” PANW states in a report.

In light of this, PANW uses machine learning in Traps, its advanced endpoint protection solution. Traps is already drawing attention; CRN news named it the “Overall Winner & 2016 Product of the Year”.

Overall, Palo Alto has received 16 buy ratings and 4 hold ratings from the Street in the last three months. We can see that the average analyst price target of $173.89 suggests this stock has upside potential of over 20%.

Just recently, on Dec. 4, William Blair analyst Jonathan Ho upgraded PANW from hold to buy. He says the company can widen the “competitive gap” relative to peers.

Top AI Stocks to Buy: Amazon (AMZN)

Top AI Stocks to Buy: Amazon (AMZN)investorplace.com/wp-content/uploads/2017/12/amznai-300×79.png 300w, investorplace.com/wp-content/uploads/2017/12/amznai-768×201.png 768w, investorplace.com/wp-content/uploads/2017/12/amznai-1024×268.png 1024w, investorplace.com/wp-content/uploads/2017/12/amznai-65×17.png 65w, investorplace.com/wp-content/uploads/2017/12/amznai-200×52.png 200w, investorplace.com/wp-content/uploads/2017/12/amznai-400×105.png 400w, investorplace.com/wp-content/uploads/2017/12/amznai-116×30.png 116w, investorplace.com/wp-content/uploads/2017/12/amznai-100×26.png 100w, investorplace.com/wp-content/uploads/2017/12/amznai-150×39.png 150w,https://investorplace.com/wp-content/uploads/2017/12/amznai-78×20.png 78w, investorplace.com/wp-content/uploads/2017/12/amznai-800×210.png 800w, investorplace.com/wp-content/uploads/2017/12/amznai-170×45.png 170w” sizes=”(max-width: 1209px) 100vw, 1209px” />

Last week, Amazon.com, Inc. (NASDAQ:AMZN) held its much-hyped cloud conference AWS re:Invent 2017 in Las Vegas.

The company unveiled a host of new AI-based products, including Amazon Translate, a service for translating text from one language into another. Andy Jassy, the leader of Amazon Web Services, also highlighted how AWS is crushing its rivals in its breadth and depth of services.

Following the five-day event, analysts quickly ramped up their price targets. Five-star Oppenheimer analyst Jason Helfstein boosted his AMZN price target on Dec. 1 from $1,165 to $1,330 (upside of 17.3%).

He says: “AWS is now well positioned to be the platform company for IOT and democratizing AI … AWS’ dominance in serverless, global databases and AI is creating unique new services in an accelerated basis, driving unpredictable services/growth.”

Indeed, AMZN has one of the best ratings from the Street right now. This ‘Strong Buy’ stock has received an impressive 32 buy ratings and just one hold rating in the last three months. Meanwhile, the average analyst price target of $1280.80 translates into upside potential that’s close to 13%.

Top AI Stocks to Buy: Alphabet (GOOGL)

Top AI Stocks to Buy: Alphabet (GOOGL)investorplace.com/wp-content/uploads/2017/12/googlai-300×79.png 300w, investorplace.com/wp-content/uploads/2017/12/googlai-768×201.png 768w, investorplace.com/wp-content/uploads/2017/12/googlai-1024×268.png 1024w, investorplace.com/wp-content/uploads/2017/12/googlai-65×17.png 65w, investorplace.com/wp-content/uploads/2017/12/googlai-200×52.png 200w, investorplace.com/wp-content/uploads/2017/12/googlai-400×105.png 400w, investorplace.com/wp-content/uploads/2017/12/googlai-116×30.png 116w, investorplace.com/wp-content/uploads/2017/12/googlai-100×26.png 100w, investorplace.com/wp-content/uploads/2017/12/googlai-150×39.png 150w,https://investorplace.com/wp-content/uploads/2017/12/googlai-78×20.png 78w, investorplace.com/wp-content/uploads/2017/12/googlai-800×210.png 800w, investorplace.com/wp-content/uploads/2017/12/googlai-170×45.png 170w” sizes=”(max-width: 1209px) 100vw, 1209px” />

Google CEO Sundar Pichai has made a big deal of Alphabet Inc’s (NASDAQ:GOOG, NASDAQ:GOOGL ) “AI first” future. The company is pouring money into AI research and acquisitions, and the investment is paying off.

On Nov. 10, KeyBanc revealed its “Top 20 AI All-Stars” within the tech sector. One of the key mega-cap stocks on this list is Alphabet. GOOGL “implemented 1,600 algorithms to enhance search last year, with AI and machine learning being core to all new services going forward” says top KeyBanc analyst Andy Hargreaves.

One example? 100% of Google’s Chinese-English Translations are ML-powered. Google says this reduces errors by 55% to 85%. Another example? Google has just released a tool called DeepVariant that uses the latest AI techniques to map a person’s genome from sequencing data.

Hargreaves has a buy rating and $1,150 price target on the stock. Overall, we can see that Alphabet has received 22 buy ratings and 3 hold ratings in the last three months. These analysts are predicting (on average) that the stock can soar 15% from the current share price of $1,011 to $1,164.

Top AI Stocks to Buy: Micron (MU)

Top AI Stocks to Buy: Micron (MU)investorplace.com/wp-content/uploads/2017/12/muai-300×79.png 300w, investorplace.com/wp-content/uploads/2017/12/muai-768×201.png 768w, investorplace.com/wp-content/uploads/2017/12/muai-1024×268.png 1024w, investorplace.com/wp-content/uploads/2017/12/muai-65×17.png 65w, investorplace.com/wp-content/uploads/2017/12/muai-200×52.png 200w, investorplace.com/wp-content/uploads/2017/12/muai-400×105.png 400w, investorplace.com/wp-content/uploads/2017/12/muai-116×30.png 116w, investorplace.com/wp-content/uploads/2017/12/muai-100×26.png 100w, investorplace.com/wp-content/uploads/2017/12/muai-150×39.png 150w,https://investorplace.com/wp-content/uploads/2017/12/muai-78×20.png 78w, investorplace.com/wp-content/uploads/2017/12/muai-800×210.png 800w, investorplace.com/wp-content/uploads/2017/12/muai-170×45.png 170w” sizes=”(max-width: 1209px) 100vw, 1209px” />

Micron Technology, Inc. (NASDAQ:MU) is one of the world’s three biggest memory companies (Samsung and SK Hynix being the other two). Together these three companies control over 80% of the $122 billion global memory chip market at a time of worldwide memory shortage.

“We believe this global memory chip shortage is set to continue until the end of 2018, at the least” writes Cyrus Mewawalla, the managing director of CM Research. He says demand for DRAM chips and NAND flash chips comes from “new and powerful technology cycles” such as artificial intelligence and augmented reality.

For example, MU chips are used to power self-driving vehicles and help the car’s systems detect hazards on the road. Specifically, Micron says it is already shipping its fastest LPDDR4x memory to “multiple automotive customers,” enabling system bandwidth speeds of 100 GB per second.

MU has received 22 buy ratings versus just 3 hold ratings in the last three months. At the same time, the average analyst price target of $53.24 indicates upside potential of over 33%.

Which stocks have a strong buy rating in the sector that interests you?

TipRanks tracks and ranks over 4,700 analysts from eight different mark

3 Big Stock Charts for Friday: General Electric Company, Nvidia Corporation and Alphabet Inc

The market is clearly taking its lead from the buzz surrounding the tax reform vote as futures spent the overnight session on a dizzying roller coaster ride. This morning’s trade is less exciting with the major indices trading mixed; however, there are still a number of popular stocks that are moving into potentially dangerous short-term trends.

Today’s three big stock charts look at the recent activity of General Electric Company (NYSE:GE), Nvidia Corporation (NASDAQ:NVDA) and Alphabet Inc (NASDAQ:GOOG, NASDAQ:GOOGL). The charts of two of these companies are suggesting lower prices on the way, while one continues to show strength.

General Electric Company (GE)

General Electric Company (GE)investorplace.com/wp-content/uploads/2017/12/171201-GE-Daily-300×227.png 300w, investorplace.com/wp-content/uploads/2017/12/171201-GE-Daily-40×30.png 40w, investorplace.com/wp-content/uploads/2017/12/171201-GE-Daily-200×151.png 200w, investorplace.com/wp-content/uploads/2017/12/171201-GE-Daily-396×300.png 396w, investorplace.com/wp-content/uploads/2017/12/171201-GE-Daily-116×88.png 116w, investorplace.com/wp-content/uploads/2017/12/171201-GE-Daily-100×76.png 100w, investorplace.com/wp-content/uploads/2017/12/171201-GE-Daily-165×125.png 165w, investorplace.com/wp-content/uploads/2017/12/171201-GE-Daily-66×50.png 66w,https://investorplace.com/wp-content/uploads/2017/12/171201-GE-Daily-78×59.png 78w, investorplace.com/wp-content/uploads/2017/12/171201-GE-Daily-158×120.png 158w” sizes=”(max-width: 700px) 100vw, 700px” />

Could it be that General Electric is setting-up for another decline? GE stock suffered a huge decline after its most recent earnings announcement along with revelations of “ghost jets.”

But now, after a short rest, the stock appears to be ready to run lower again.

After trading for weeks in oversold territory, General Electric shares embarked on a short-term rally that took it 6% higher. Now, shares are unwinding from the “dead cat bounce” and falling back into their intermediate-term bearish trend. GE shares are now testing critical round-numbered support at $18 again. A break back below this price will draw even more selling pressure on General Electric stock, likely forcing it to break through the recent bottom just below $17.50. Trend indicators such as the MACD and Chande Trend Meter remain in bearish mode, signaling that buying power for GE stock is lacking the necessary strength to break GE’s current short- and intermediate-term trends.

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Nvidia Corporation (NVDA)

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This white-hot stock is finally seeing some selling pressure as we head into the last month of trading for 2017. Traders are likely to take their cue from any change in the technical trend, which Nvidia shares are threatening to do now.

After hitting new highs just under $220, NVDA shares are seeing selling pressure from profit-taking. The sector has been hit, but Nvidia is seeing deeper selling based on its past relative strength. The recent weakness has NVDA stock trading at its 50-day moving average, a technical test that will determine whether the next move it a 5-10% correction or rally. Momentum indicators are shifting into neutral mode, signaling that we should expect to see NVDA stock trade in a range at-best. Key chart support is in place at $195, as indicated by the green line in the chart above. A break below this price will also represent a move below the 50-day, which would accelerate selling in Nvidia.

Next Page

Alphabet Inc (GOOGL)

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Another technology name that has been running into selling pressure is Alphabet. GOOGL shares topped at $1,080, but have seen significant selling pressure over the last week.

Now, the stock faces a technical battle to remain in the bull’s good graces looking forward into the end-of-year trade.

Serious chart support at $1,030 is now in-play. This price acted as support in November after the company’s earnings popped prices higher and then again in mid-November when GOOGL saw a “sell the news” selloff. The Chande Trend Meter for Alphabet shares is now moving from bullish to neutral territory. This suggests that GOOGL stock has lost momentum and is at risk of falling into an intermediate-term selling trend. With the 50-day moving average trending higher and sitting in position just above $1,000 (a significant round-number for support), GOOGL stock is more likely to see a significant amount of buying pressure come in to buy the dip at this price.

As of this writing, Johnson Research Group did not hold a position in any of the aforementioned securities.