Alphabet stock price forecast for Q4 as Pixel 6 prices leak ahead of launch on Tuesday

By:
on Oct 18, 2021
  • Alphabet shares on Monday edged higher nearly 1% ahead of its Pixel 6 event on Tuesday.
  • Leaked prices suggest the Pixel 6 will launch at $599 while the 6 Pro starts at $898.
  • The pricing is substantially lower compared to close competitors Galaxy S21 ($700) and S21 Ultra ($1,000).

On Monday, Alphabet Inc. (NASDAQ:GOOG) shares edged higher nearly 1% after the Pixel 6 and Pixel 6 Pro prices leaked ahead of the launch on Tuesday. According to a report published on GSM Arena, Google’s Pixel 6 smartphone pricing starts at $599, while the Pixel 6 Pro will launch at $898. 

The leaked pricing is significantly lower compared to Samsung Electronics Co. Ltd’s (KRX:005930) Galaxy S21 and S21 Ultra, which launched at $700 and $1,000, respectively. As a result, Google’s latest smartphones could gain more traction in the market from the pricing perspective.

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The Pixel 6 range’s competitiveness is significantly higher compared to its predecessor, Pixel 5, which launched at $699 despite sporting a mid-range chip-set. 

Should you bet on Alphabet’s growth?

From an investment perspective, Alphabet shares trade at a reasonable 12-month trailing and forward P/E ratios of 37.76 and 26.74, respectively. As a result, value investors could still choose to buy the stock given its exciting growth prospects.

Alphabet has diversified its business significantly to avoid overreliance on Google Search and YouTube. Its entry into the smartphone market is beginning to gain significant traction, thereby providing a sustainable stream of income.

The company’s device business also integrates well with its software and services units, thus boosting growth prospects. 

As a result, analysts expect its earnings per share to increase by more than 72% this year before rising at an average annual rate of 24.41% over the next five years, making the stock a compelling option for growth investors.

Source – TradingView

Technically, Alphabet shares seem to be trading within an ascending channel formation in the intraday chart, after bouncing off the 100-day moving average. However, the stock is yet to reach overbought conditions, thus leaving room for more upward movement.

Therefore, investors could target extended gains at about $2,922, or higher at $3,030, while $2,782 and $2,677 are crucial support zones.

It is not too late to buy GOOG shares

In summary, although Alphabet shares are up more than 65% this year, the stock still trades at compelling valuation multiples whilst offering exciting growth prospects.

Therefore, Tuesday’s Pixel 6 launch event could be the catalyst for an extended rally ahead of earnings next week.

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