AI spending plans and bond issuance weigh — Alphabet stock slips below key averages

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Alphabet drops 0.59% to $309.13 today

Highlights

Alphabet posted Q4 earnings per share of $2.82 and full-year revenue of $403 billion, while announcing 2026 capital expenditures of $175–$185 billion to scale AI and data centers.
Alphabet completed a record $31.5 billion bond issuance, including 100-year maturities, and secured full EU antitrust approval for its $32 billion Wiz cybersecurity acquisition.
Alphabet shares trade at $309.13, below short- and medium-term averages (MA-20: $329.29, MA-50: $321.44), with bearish momentum and key resistance at $327.73 and support at $305.00.

AI expansion and bond deal reshape growth narrative amid strong results

Alphabet reported strong fourth quarter results with earnings per share of $2.82 beating estimates and annual revenue reaching $403 billion, but the company unveiled a sharp increase in capital expenditures for 2026, planning $175–$185 billion to boost AI and data center expansion. To fund these investments, Alphabet completed its largest-ever bond offering, raising $31.5 billion, and added very long-dated bonds, including 100-year maturities. The company's Gemini AI received a significant upgrade, and EU antitrust authorities granted full approval for Alphabet's $32 billion acquisition of Wiz, furthering its move into cybersecurity.

Bearish momentum persists as oscillators reinforce downside risk

Momentum signals on the daily chart remain weak, with the MACD in a neutral but bearish-leaning posture and ADX suggesting a downward directional move. The RSI is nearing oversold at 34.11, while Stochastic RSI, CCI, and Bull/Bear Power all indicate strong selling pressure. The price is currently near today's low, and both volatility and bearish momentum persist, reinforced by most oscillators and the lack of bullish divergence. Nearest resistance sits at the Ichimoku Kijun level of $327.73, with MA-200 providing key support below.

Upside scenario favored as technical signals temper downside odds

For the next five trading days, GOOGL is expected to trade within a typical volatility band of $305.00 to $320.00, adjusted for current levels. Short-term price increases are highly probable (over 80%) given multiple 'Buy' signals from weekly moving averages, RSI, ADX, and MACD, which significantly lowers the chance of a near-term decline. The main scenario is price stabilization and consolidation within this corridor; a sustained bullish breakout would require a close above $327.73, while failure to hold current support could lead to a move toward $305.00.

Anton Kharitonov, expert at Traders Union, sees Alphabet facing short-term technical pressure despite solid fundamentals and positive news on AI and M&A. He notes bearish momentum dominates with weak price action and crowded selling signals, while heavy investment plans and increased leverage weigh on sentiment. The analyst remains cautious due to the risk of further downside if support breaks. "Until price moves decisively above $327.73, I remain defensive and see no rush to add long exposure here."

Last time, analysts noted that Google had completed a major upgrade of its Gemini 3 Deep Think reasoning model, delivering substantial improvements in mathematics, sciences, and programming capabilities. The new model established leading benchmarks in key AI assessments and is being rolled out to select enterprise and research users, highlighting Google's continued momentum in advanced AI development and its expanding accessibility for practical applications.

Source of Data: GOOGL Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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