Quantum computing and YouTube headlines helped shares of Goggle (GOOG) to jump more than 4% on Monday.
Last week, Alphabet – a subsidiary of Google – splashed headlines regarding new advances in the company’s quantum computing chip “Willow”.
The company’s developmental chip has boasted the power to exponentially reduce errors, addressing a key challenge in quantum error correction that has persisted for nearly 30 years.
At the same time, Willow has completed a complex computation tests in under five minutes a task that would reportedly take today's fastest supercomputers approximately 10 septillion years, vastly exceeding the age of the universe.
Click here to read more about Google's Will Chip Headlines.
Google’s recent headlines have launched a crowd of investors and traders into several unknown quantum computing stocks over the last week.
While “moonshot” headlines for developmental companies will make for fast and volatile moves, Google is seen as a realistic winner in the quantum computing space.
Shares of Google are now trading at new all-time highs as they approach the $200 price. While the headlines are splashy for this and other quantum computing stocks, daily volume figures are starting to show that investors may be pulling back on the reigns.
Google’s press above $200 on lighter volume would serve as a warning that the stock may be preparing for a short-term pullback to more reasonable valuations.
From a short-term perspective, a healthy correction in Google stock would target a price of $185.
From a long-term perspective, shares of Google remain in a bull market trend with a target price of $250.
