Insider Selling

Alphabet CEO Files Form 144 Just As $GOOGL Price Topples Over

Tech companies ruled the stock market news throughout 2021. These also included Alphabet Inc. (GOOGL:US) was one such stock, which’s price rose by nearly 67.9% last year. The stock was also held in favor for its popularity; its better known investors include several U.S. Congress members like Rep. Josh Gottheimer (D-NJ) and Speaker Nancy Pelosi (D-CA).
But the beginning of 2022 did not continue Alphabet’s star studded walk.

CEO Files Form 144

Alphabet’s CEO, Sundar Pichai, announced an intention to sell shares of his company’s stock on Jan 19.

  • Two Form 144s listed a total of 9,595 shares of $GOOG, valued at an estimated total of 26.03 million USD
  • And one Form 144 listed 525 shares  of $GOOGL, valued at an estimated total of 1.42 million USD

These forms are in fact one of many filed by Pichai. The company’s other insiders also frequently made plans to and sold many expensive shares of $GOOGL throughout 2021. The tech stock was valued at $1,728.24 at the start of 2021, and by the end had risen to $2,901.49. Currently, the stock is valued at $2,666.15, which still doesn’t seem bad.

Regardless, Alphabet stock’s price drop has sent red flags swarming. Investors whose portfolios are devoid of $GOOGL are hoping to buy in, thinking of the situation as dip buying.

Reasons for the Bearish Turn

In the past month, $GOOGL’s value has dropped by 7.43%. Not a very large percentage, but many possible theories could have contributed to this.

One analyst’s review of several tech stocks, like Salesforce.com (CRM:US) and Adobe Inc. (ADBE: US), led to their prices dropping slightly. This price drop ended up crossing over to Alphabet as well. In spite of the clear fact that much of Google’s revenue comes from online advertising and Internet content; the other downgraded companies are software producers.

In addition to this, some tech companies are facing heat from the upcoming bill, The American Innovation and Choice Online Act, an antitrust legislation led by Sen. Amy Klobuchar (D-MN) and Sen. Chuck Grassley (R;IA). The bill aims to bar tech companies from promoting their own services and products at the expense of competitors’ offering.

Even though the bill is still in the hatching egg stage, it is still sending warning signs. Pichai is only one of the many CEOs who is against the bill’s passing.

It’s too soon to say anything for the stock market this year. But considering the sources, Alphabet’s stock predictions can go either bullish or bearish in 2022.

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