Google parent company Alphabet Inc‘s shares have seen better days, plummeting 35% from its all-time highs, placing it firmly in bear market territory among tech giants.
Alphabet Stock in Deep Bearish Waters
Technically, Alphabet stock is in deep bearish waters, trading below key moving averages, signaling a strongly bearish trend. However, some buying pressure hints at a potential future turnaround.
The short-term outlook for Alphabet is mixed, with the share price slightly above its eight-day moving average, while remaining below the broader 20-day and 50-day averages.
The stock’s MACD and RSI indicators point to continued bearish sentiment, with the Bollinger Bands indicating further selling pressure ahead.
Why Are Google Stock Investors So Bearish?
Alphabet investors are cautious due to antitrust lawsuits from the U.S. government and Europe, raising concerns of potential penalties impacting the stock. Additionally, hefty spending on AI development is straining short-term capital efficiency.
Is Alphabet Poised for Comeback?
Despite the challenges, Alphabet maintains a strong balance sheet, with consistent revenue growth and earnings per share expansion. The company’s minimal debt, ample cash reserves, and recent dividend introduction offer long-term investor appeal.
With potential resolution of regulatory issues and optimization of AI-related expenses, Alphabet could bounce back, presenting a compelling opportunity for investors in the long haul.
The road to recovery may be tough in the short run for Alphabet stock.