Alphabet will keep climbing even though it has surpassed $1,000 a share, Oppenheimer technical analyst Ari Wald says.
Using a chart of Alphabet's performance versus the S&P 500, the technical analyst noted that despite an 18-month narrowing range versus the market, Alphabet has now broken out. That suggests it will significantly outperform the market.
"Recently, the stock has broken up to the upside," Wald said Wednesday on CNBC's "Power Lunch." "We think that is marking a resumption of longer-term outperformance, and in a rising market cycle to boot. We recommend buying shares."
The tech giant has surged 26 percent year to date as investors have piled into the tech company. Boris Schlossberg, managing director of FX strategy at BK Asset Management, believes Alphabet has managed to assert its dominance in the app space, which has allowed it to grow as a company.
"I think no company owns the consumer mindspace as much as Alphabet does with the exception of maybe Facebook," Schlossberg said. "That's why there's so much promise in them going forward."
"They're just very dominant in every space that they're in, and I don't see any threat to that dominance going forward," Schlossberg added.
The stock reached the $1,000 mark on Monday, but has stayed relatively flat this week since then.