Google Stock: Layoffs Change It All


  • I am changing my previous Hold rating to Buy, as the company appears to be undervalued in light of the cost optimization measures announced by management.
  • The layoffs were a necessary decision, and their impact should support the company’s margins in the foreseeable future, which will be very difficult for the economy as a whole.
  • Taking all the discussed factors into account, Google stock turned out undervalued by 16.26% according to my DCF valuation model.
  • Perhaps the recent breakout from the descending price channel on increased volumes and the intersection with the 200-week line SMA has already set a new trend that will continue.
  • GOOGL is a Buy with a price target of $115 per share by the end of 2023.

Google Hosts Its Annual I/O Developers Conference

Justin Sullivan

Intro & Thesis

About 2 months ago I published an article on Google (NASDAQ:GOOGL) exposing the misleading information that insiders were actively buying stock. At the time, I advised against buying Google stock and spoke of the

Seeking Alpha, GOOGL, author's notes

Seeking Alpha, GOOGL, author’s notes

Data provided by @QuisitiveInvest, based on 10-Ks [author's notes]

Data provided by @QuisitiveInvest, based on 10-Ks [author’s notes]

Author's calculations, Seeking Alpha data

Author’s calculations, Seeking Alpha data

Morgan Stanley's report [January 10, 2023]

Morgan Stanley’s report [January 10, 2023]

Data by YCharts

Data by YCharts, author's inputs, author’s inputs

Data by YCharts

Data by YCharts

Author's calculations

Author’s calculations

Author's calculations

Author’s calculations

TrendSpider, GOOGL, author's notes

TrendSpider, GOOGL, author’s notes

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in GOOGL over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Struggle to navigate the stock market environment?

Beyond the Wall Investing is about active portfolio positioning and finding investment ideas that are hidden from a broad market of investors. We don’t bury our heads in the sand when the market is down – we try to anticipate this in advance and protect ourselves from unnecessary risks accordingly.

Keep your finger on the pulse and have access to the latest and highest-quality analysis of what Wall Street is buying/selling with just one subscription to Beyond the Wall Investing! Now there is a free trial and a special discount of 10% – hurry up!

Leave a Reply

Your email address will not be published. Required fields are marked *