Alphabet shares rose 5 percent to an all-time high, adding to market capitalization of around $ 50 billion on Monday, after reporting quarterly results that exceeded Wall Street expectations.
According to TodAn Gordon, founder of TradingAnalysis.com, the stock is expected to rise north of $ 1,500 a share and up to $ 1,700. This would bring the name well above the $ 1 trillion mark, according to a CNBC analysis of Alphabet A, B and C stocks. At the current level, the stock would need somewhere between 18.5 and 19.5 percent rise to reach this milestone.
"We have a very important level, only about $ 1,200, by chance, that was at the beginning of 2018, we overcame it, and we come back here to try and drive up profits The earnings reports are expected to see a $ 55 hike up or down, so if it's a good thing and Street likes it, then we should go ahead, "said Gordon on Friday in CNBC's" Trading Nation. "
On a longer-term weekly chart, back to June 2010, an uptrend channel has developed and is showing a projected rise from $ 1,600 to $ 1,700 next year, Gordon said.
"You have a nice uptrend parallel channel here, which should serve as resistance when Google places a bid, this level only comes in when you've risen $ 1,600 to $ 1,700, so we'll have room for the next one Year, "he added.
When it comes to the company's quarterly report, the key performance indicator investors should be aware of is their core margin, said David Seaburg, head of Sales and Trading at Cowen. He told "Trading Nation" on Friday that Cowen expects Alphabet's traffic acquisition cost to slow down for the first time in 11 quarters. In other words, it is predicted that Alphabet will pay its affiliates less, which will drive traffic from businesses and consumers to the search engine itself.
"If they can maintain their core margin at 35 percent or better and sales are relatively high in line with their expectations, it should be fine, and I think the stock will work," Seaburg said, adding that alphabet has room, especially considering its relatively small rally this year compared to its other "FANG" counterparts.