Google’s Alphabet stock Class A (NSADAQ: GOOGL) opened Thursday’s trading bell at $398 and is gearing up to breach the $400 range. GOOGL is now at its yearly high after delivering robust revenues in April’s earnings call. A handful of institutional clients who accumulated the equity before the earnings call are all enjoying profits.
Now that Google stock is at a yearly high, the risk of a sell-off remains high due to profit-booking. If retail and institutional funds begin offloading GOOGL to book a profit, the chances of the asset heading south get higher. The risk of a downward trend is increasing as analysts say GOOGL might have already peaked in value.
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If a Market Crashes, How Low Will Google Stock Fall?
Leading market research and analytics firm Zachs has predicted that Google stock could plunge to a low of $220 if the market crashes or enters bear territory. The prediction is a major warning of a steep decline that can erase all gains made in a year. The Middle East crisis escalating further or a recession hitting the market could be among the reasons for a crash.
If the market crash prediction turns out to be accurate, Google stock could lose 45% in value. Therefore, an investment of $1,000 could turn into $550 if the doomsday projection turns out to be precise. The downside is harsher than the upside and could be a reality if the markets enter a recession. However, the calls of a recession have cooled down after the Iran-US ceasefire.
On the upper side, the analytical firm has projected Google stock to reach a high of $515, if the market prospects are normal. That’s an uptick and return on investment of approximately 30% from its current price of $398. Therefore, an investment of $1,000 could turn into $1,300 if the projection turns out to be accurate.