Alphabet stock price extends rally into May but legal pressures limit upside outlook
Google shares face DOJ pressure as uptrend shows fatigue.
Alphabet Inc.'s Class A shares have extended their upward trajectory into May, continuing a broader uptrend that began from April’s lows.
The stock has now posted three consecutive daily gains, forming a series of higher highs and higher lows. Despite this, the strength of the move is starting to show signs of fatigue.
Technically, the trend structure points to a still-bullish setup. RSI readings on both the daily and 4-hour charts have moved into bullish territory, while a golden cross between the 20- and 50-period EMAs on the 4-hour chart confirms near-term momentum. These moving averages now offer technical support near $159, where buyers are likely to step in if the price pulls back.
GOOGL stock price dynamic (Jan - May 2025)
However, the volume has thinned during this latest leg higher, suggesting the upward drive may lack conviction. This is especially notable as Google stock struggles to break through the key $164 level which is just 1.2% below April’s peak near $166.5. In premarket trading on Monday, May 5, the stock hovered around $162.5, reflecting trader hesitation ahead of key risk events.
Alphabet faces resistance near 1.2% below April high as traders await DOJ decision
That caution stems largely from escalating legal pressure. A federal judge recently ruled that Google unlawfully tied together its ad server and exchange platforms. The Department of Justice is now seeking structural remedies to restore competition, including the potential forced divestiture of Google Ad Manager. Such a breakup could significantly impact the company’s advertising dominance and long-term revenue model.
Separately, Google has agreed to a $350 million settlement with shareholders over claims that security flaws in Google+ exposed user data. Though this settlement is not expected to materially affect financials, it adds to the headline pressure weighing on investor sentiment.
In summary, while Alphabet shares are technically supported and still trending upward, the lack of strong volume combined with legal and regulatory concerns are creating a ceiling just below previous highs. Until there’s greater clarity on the DOJ’s next steps, further upside may be limited despite the underlying bullish structure.
Google stock gained 1.9% on May 1, rebounding from recent lows as tech sentiment improved.The stock approached $164 after two bullish days confirmed recovery momentum.
