Alphabet stock struggles below key EMAs amid fears over more regulation
Alphabet tries to improve its market position through investing in prospective ventures.
Alphabet (NASDAQ: GOOG) is under selling pressure, currently trading at $167.14, well below its 50-day and 200-day exponential moving averages (EMAs). The technical outlook remains bearish as the stock faces significant resistance while approaching key support levels.
The stock has struggled to reclaim the 200-day EMA at $174.48, reinforcing its status as a key barrier for a potential recovery. The stronger resistance level at $176.95 could further limit upside movement in the short term. On the downside, GOOG is approaching the critical support at $158.94, which, if breached, could lead to a further decline toward $148.16.For the stock to shift back to a bullish trajectory, it needs to clear both the 200-day EMA and the $176.95 resistance level. However, with current price action remaining weak, further downside remains a possibility.
GOOG stock price dynamics (April 2024 – March 2025) Source: TradingView.
Market context
Despite the recent pullback, Alphabet’s long-term growth story remains intact. The company continues to dominate in digital advertising, cloud computing, and artificial intelligence. The recent stock correction has raised questions about whether GOOG is now undervalued compared to its historical price levels and industry peers.
According to MarketBeat, Alphabet’s forward price-to-earnings (P/E) ratio has dropped to levels that make it more attractive compared to other tech giants like Microsoft and Amazon. Analysts argue that this correction could provide a compelling entry point for long-term investors.Additionally, Alphabet’s advertising business remains strong, with YouTube and Google Search continuing to drive revenue growth. Google Cloud has also seen significant expansion, contributing to the company’s overall financial stability. However, concerns over increased regulatory scrutiny and rising competition in AI and cloud services have kept investors cautious in the short term.Institutional investors may be waiting for a technical confirmation before re-entering the stock. If GOOG can reclaim key resistance levels, buying pressure could return, supporting a rebound in the coming weeks.
Price scenarios
Alphabet’s short-term outlook remains bearish-to-neutral, with key support at $158.94 being the critical level to watch. If the stock fails to reclaim the 200-day EMA, further downside toward $148.16 is possible.
Bullish scenario: If GOOG holds above $158.94 and reclaims the 200-day EMA at $174.48, it could test resistance at $176.95. A breakout above this level would shift momentum toward $208.65.
Neutral scenario: Sideways consolidation between $158.94 and $174, with investors awaiting a breakout.
Bearish scenario: A break below $158.94 could accelerate losses toward $148.16, increasing downside risk.
For now, Alphabet remains under pressure, and unless it reclaims at least $174.48, the risk of further declines remains high.
On the positive side, the company's investment activity provides some hope for shareholders. As we have mentioned before, the recent acquisition of a cybersecurity firm Wiz has a potential for a synergy effect for Alphabet.
