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Alphabet falls after earnings release, but chart analyst says buy the dip

Any Alphabet pullback should be bought: Investing pro

It's the final FAANG frontier.

Google parent Alphabet reported earnings after the bell Monday, the last FAANG stock to release the latest quarterly results. The other names – Facebook, Apple, Amazon, and Netflix – have each reported in recent weeks.

However, while the company posted better-than-expected results, the stock fell in after-hours trading.

Ari Wald, head of technical analysis at Oppenheimer, says investors should buy into weakness.

"The stock is moving higher versus the S&P 500 as well really since the start of the year — that was the tactical signal. It's a little bit extended near term but, again, expect higher lows followed by higher highs. Pullbacks should be bought," said Wald Monday on CNBC's "Trading Nation" before the release.

"The stock does screen well for us longer term. We think it continues to make higher lows followed by higher highs," Wald said. "The standout here is really … the top-down tail winds from what remains a relatively and broadly strong technology sector."

Alphabet is often grouped among high-momentum tech stocks even though it is not technically a part of the sector -- the stock was reallocated to the communications services sector in mid-2018. It typically gets a boost from strong investor appetite for tech.

"These high-growth companies just remain resilient to these oscillating interest rates and every time the growth scare hits, the premium gets placed on them," Wald said.

Alphabet shares have risen 11% this year, better than the 2% increase in the XLC communications services ETF and 5% gain on the XLK technology ETF.

Quint Tatro, president of Joule Financial, is more cautious on Alphabet after its major run.

"We've been net sellers here of big-cap tech. I know it's not a popular view, but I struggle paying 26, 27 times forward earnings for something that's only growing 17%. I know that they traditionally have been trading in that range, but I think they're priced near to perfection," said Tatro said during the same segment.