Home Forex GOOG jumps on layoffs that affect 6% of the search giant’s workforce

GOOG jumps on layoffs that affect 6% of the search giant’s workforce

by SuperiorInvest
  • Alphabet to lay off about 12,000 employees.
  • GOOG shares benefited from Friday’s news.
  • Alphabet will focus on AI technology.
  • $102 is another price target for GOOG bulls.

alphabet (GOOG) shares rose 3.7% to $97.40 on Friday after the paid search and online advertising behemoth announced 12,000 job cuts. Recent figures indicated that Alphabet, Google’s parent company, had 187,000 global employees, and critics have often suggested that Google has too many employees working in too many non-core business segments. The NASDAQ jumped 0.8% at the open after two sessions of losses.

Promotional news of the alphabet

Next to Microsoft (MSFT) the recent announcement that they will lay off 10,000 employees and similar layoffs meta (META) and Amazon (AMZN)Alphabet and these other named tech giants have cut a combined workforce of more than 50,000 in recent months. That’s not even counting the relatively large layoffs from people like SalesForce (CRM) and Netflix (NFLX).

One important aspect of recent big tech job cuts is that nearly all of these companies experienced rapid hiring during the pandemic and are now cutting as management teams expect the Federal Reserve’s rapid tightening cycle to ripple through the economy in 2023 .Reports earlier this week that December retail sales fell -1.1% month-on-month have since reinforced that view.

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

Alphabet stock prediction

Alphabet shares fell short at the open above $96 and will now be thinking about retesting the $102 resistance. However, the bulls likely need another catalyst to reach this price level. GOOG stock last reached this price level on December 1st and last closed above it on October 25th. If excitement over Google’s job cuts dies down, then expect GOOG to drop back into the two support zones surrounding $85.50 and $83.50. However, at the moment the Moving Average Convergence Divergence (MACD) indicator is just crossing the bullish position above the zero line, so expect this rally to have legs as GOOG has already been in an uptrend.

GOOG Daily Chart

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